ABC Inc. reported income from continuing operations before tax of $2,774,500 during 2021. Additional transactions occurring in 2021 but not included in the $2,774,500 are as follows: 1. The corporation experienced an insured flood loss of $124,000 during the year. 2. The sale of FV-NI investments resulted in a loss of $166,850. 3. When its president died, the corporation gained $155,000 from an insurance policy. The cash surrender value of this policy had been carried on the books as an investment in the amount of $71,300 (the gain is non-taxable). 4. The corporation disposed of its recreational division at a loss of $178,250 before tax. Assume that this transaction meets the criteria for accounting treatment as discontinued operations. Instructions: (a) Prepare an income statement for the year 2021, starting with income from continuing operations before income tax. Calculate earnings per share as required under IFRS. There were 60,000 common shares outstanding during the year. (Assume a tax rate of 18% on all items unless they are noted as being non-taxable.) (b) Assume that beginning retained earnings for 2021 is $6,967,000 and that dividends of $381,250 were declared during the year. Prepare the retained earnings portion of the statement of changes in equity for 2021.