Arbridge Inc., a company that follow IFRS, has 400,000 common shares authorized and 120,000 outstanding. In 2012, the company reports Net income before taxes of $4,500,000. Additional transactions not considered in the $4,500,000 are below: 1. In 2012, Arbridge Inc. sold financial assets (OCI) for $1,400,000. These assets were recorded in long-term assets at $1,000,000. 2. In 2012, the company discontinued operations of one of its wholly owned subsidiaries in Brussels that required a write up of $90,000 before taxes. The loss on operations of the subsidiary was $100,000 before taxes prior to it becoming a discontinued operation; the loss on disposal of the subsidiary was $200,000 before taxes. 3. A sum of $520,000 was received in 2013 as a result of a lawsuit for a breached 2012 contract. This settlement was received before release of the 2012 financial statements. Before the decision, legal counsel was expecting this outcome of the suit and had not established a receivable. 4. In 2012, the company reviewed its accounts receivable and determined that $54,000 of accounts receivable that had been carried for years appeared unlikely to be collected. No allowance for doubtful accounts was previously set up 5. An internal audit discovered that amortization of intangible assets was understated by $35,000 (net of tax) in a prior period. The amount was charged against retained earnings