Bayberry Corporation performs year-end planning in November each year before its fiscal year ends in December. The preliminary estimated net income following IFRS is $4.87 million. The CFO, Rita Warren, meets with the company president, Jim Bayberry, to review the projected numbers. The corporation has never used robotic equipment before, and Rita assumed an accelerated method of depreciation because of the rapidly changing technology in robotic equipment. The company normally uses straight-line depreciation for production equipment The investment securities held at year end were purchased during 2020, and are accounted for using the fair value through other comprehensive income (FV-OCI) model. Jim explains to Rita that it is important for the corporation to show a $8.12-million income before tax because he receives a $1.16- million bonus if the income before tax and bonus reaches $8.12-million. He also cautions that the company does not want to pay more than $2.90 million in income tax to the government. Rita presents the following projected information. $33,640 BAYBERRY CORPORATION Projected Income Statement Year Ended December 31, 2020 ($000s) Sales Cost of goods sold $ 16,240 Depreciation 3,016 Operating expenses 7,424 Income before income tax Provision for income tax Net income 26.680 6,960 2.088 $4,872 SELECTED STATEMENT OF FINANCIAL POSITION INFORMATION December 31, 2020 ($000s) Estimated cash balance $5,800 Investment securities (FV-OCI) (at cost) 11,600 Cost Estimated Fair Value Security A B $2,320 4,640 3,480 1,160 $11,600 $2,552 4.524 3,480 2,088 $12,644 D Total Other information ($000s) at December 31, 2020: Equipment Accumulated depreciation (5 years, straight-line) New robotic equipment (purchased 1/1/20) Accumulated depreciation (5 years, double-declining- balance) $3,480 1,392 5,800 2.320 (a) What can Rita do within IFRS to accommodate the president's wishes to achieve $8.12 million of income before tax and bonus? Present the revised income statement based on your decision. What can Rita do within IFRS to accommodate the president's wishes to achieve $8.12 million of income before tax and bonus? Present the revised income statement based on your decision BAYBERRY CORPORATION Projected Income Statement For the Year Ended December 31, 2020 $ S $ Bayberry Corporation performs year-end planning in November each year before its fiscal year ends in December. The preliminary estimated net income following IFRS is $4.87 million. The CFO, Rita Warren, meets with the company president, Jim Bayberry, to review the projected numbers. The corporation has never used robotic equipment before, and Rita assumed an accelerated method of depreciation because of the rapidly changing technology in robotic equipment. The company normally uses straight-line depreciation for production equipment The investment securities held at year end were purchased during 2020, and are accounted for using the fair value through other comprehensive income (FV-OCI) model. Jim explains to Rita that it is important for the corporation to show a $8.12-million income before tax because he receives a $1.16- million bonus if the income before tax and bonus reaches $8.12-million. He also cautions that the company does not want to pay more than $2.90 million in income tax to the government. Rita presents the following projected information. $33,640 BAYBERRY CORPORATION Projected Income Statement Year Ended December 31, 2020 ($000s) Sales Cost of goods sold $ 16,240 Depreciation 3,016 Operating expenses 7,424 Income before income tax Provision for income tax Net income 26.680 6,960 2.088 $4,872 SELECTED STATEMENT OF FINANCIAL POSITION INFORMATION December 31, 2020 ($000s) Estimated cash balance $5,800 Investment securities (FV-OCI) (at cost) 11,600 Cost Estimated Fair Value Security A B $2,320 4,640 3,480 1,160 $11,600 $2,552 4.524 3,480 2,088 $12,644 D Total Other information ($000s) at December 31, 2020: Equipment Accumulated depreciation (5 years, straight-line) New robotic equipment (purchased 1/1/20) Accumulated depreciation (5 years, double-declining- balance) $3,480 1,392 5,800 2.320 (a) What can Rita do within IFRS to accommodate the president's wishes to achieve $8.12 million of income before tax and bonus? Present the revised income statement based on your decision. What can Rita do within IFRS to accommodate the president's wishes to achieve $8.12 million of income before tax and bonus? Present the revised income statement based on your decision BAYBERRY CORPORATION Projected Income Statement For the Year Ended December 31, 2020 $ S $