Vivando Ltd. follows IFRS and reported income from continuing operations before income tax of $1,820,000 in 2020. The year-end is December 31, 2020, and the company had 225,000 outstanding common shares throughout the 2020 fiscal year. Additional transactions not considered in the $1,820,000 are listed below:

In 2020, Vivando sold equipment of $75,000. The equipment had originally cost $92,000 and had accumulated depreciation to date of $33,400. The gain or loss is considered ordinary.

The company discontinued operations of one of its subsidiaries, disposing of it during the current year at a total loss of $180,600 before tax. Assume that this transaction meets the criteria for discontinued operations. The loss on operation of the discontinued subsidiary was $68,000 before tax. The loss from disposal of the subsidiary was $112,600 before tax.

The sum of $180,200 was received because of a lawsuit for a breached 2016 contract.

Before the decision, legal counsel was uncertain about the outcome of the suit and had not established a receivable.

In 2020, the company reviewed its accounts receivable and determined that $125,600 of accounts receivable that had been carried for years appeared unlikely to be collected. No allowance for doubtful accounts was previously set up.

An internal audit discovered that amortization of intangible assets was understated by

$22,800 (net of tax) in a prior period. The amount was charged against retained earnings.

Required: Analyze the above information and prepare an income statement for the year 2020, starting with income from continuing operations before income tax (Hint: refer to the Toulon Ltd. example in Section 4 of this chapter). Calculate earnings per share as it should be shown on the face of the income statement. Assume a total effective tax rate of 25% on all items, unless otherwise indicated.