Current Attempt in Progress Riverbed Corporation, a clothing retailer, had income from operations (before tax) of $ 412,500, and recorded the following before- tax gains/(losses) for the year ended December 31, 2020: Gain on disposal of equipment 29,700 Unrealized (loss)/gain on FV-Nl investments (59,400) (Loss)/gain on disposal of building ( 74,800) Gain on disposal of FV-Nl investments 36,300 Riverbed also had the following account balances as at January 1, 2020: Retained earnings $ 451,000 Accumulated other comprehensive income (this was due to a revaluation surplus on land) 95,600 Accumulated other comprehensive income (this was due to gains on FV-OCl investments) 60,500 As at January 1, 2020, Riverbed had one piece of land that had an original cost of $142,000 that it accounted for using the revaluation model. It was most recently revalued to fair value on December 31, 2019, when its carrying amount was adjusted to fair value of $ 237,600. In January 2020, the piece of land was sold for proceeds of $ 237,600. In applying the revaluation model, Riverbed maintains the balance in the Revaluation Surplus (OCI) account until the asset is retired or disposed of. In 2015, Riverbed purchased a portfolio of debt investments that the company intended to hold for longer term and classified the portfolio of investments as fair value through other comprehensive income (FV-OCI) with gains/losses recycled through net income. The investments in the portfolio are traded in an active market. Riverbed records unrealized gains and losses on these investments as OCI, and then books these gains and losses to net income when they are impaired or sold. The portfolio's carrying amount on December 31, 2019, was $ 121,000. The entire portfolio was sold in November 2020 for proceeds of $ 138,600. Riverbed's income tax expense for 2020 was $ 108,900. Riverbed prepares financial statements in accordance with IFRS. Calculate net income for the year ended December 31, 2020. Riverbed Corporation Partial Statement of Income For the year Ended December 31, 2020 Income from Operations $ 412500 Other Expenses and Losses Gain on disposal of Equipment $ 29700 Gain on disposal of FV-NI Investments 36300 Gain on disposal of FV-OCI Investments Other Expenses and Losses Loss on Disposal of Building -74800 i Unrealized Loss on FV-NI Investments 59400 i Income before Income Tax 000! Income Tax Expense Net Income /(Loss) Calculate retained earnings as at December 31, 2020. Riverbed Corporation Statement of Retained Earnings For the year Ended December 31, 2020 Beginning balance, January 1 $ ta Add V: Net Income /(Loss) > Ending balance, December 31 $ Calculate net income for the year ended December 31, 2020, if Riverbed prepares financial statements in accordance with ASPE. Riverbed's income tax expense would not change. Riverbed Corporation Partial Statement of Income For the year Ended December 31, 2020 Income from Operations $ Other Revenues and Gains Gain on disposal of Equipment Gain on disposal of FV-NI Investments DO Gain on disposal of Fair Value through OCI Investments Total Other Revenues and Gains Other Expenses and Losses Loss on Disposal of Building Unrealized Gain on FV-NI Investments Total Other Expenses and Losses Income before Income Tax Income Tax Expense Net Income /(Loss) $ Calculate retained earnings as at December 31, 2020, if Riverbed prepares financial statements in accordance with ASPE. Assume that under ASPE, Riverbed's retained earnings at January 1, 2020, would be $ 511,500. Riverbed Corporation Statement of Retained Earnings For the year Ended December 31, 2020 Beginning balance, January 1 $ III Add V: Net Income /(Loss) Ending balance, December 31 $ Will the sum of the Accumulated Other Comprehensive Income and Retained Earnings under IFRS equal the balance of Retained Earnings under ASPE at December 31, 2020? Prepare a continuity schedule of the related accounts to demonstrate your answer. The sum of the AOCI and Retained Earnings under IFRS equal the balance of Retained Earnings under ASPE as follows: IERS Retained Earnings Balance Jan. 1, 2020 $ $ Transfer of accumulated revaluation surplus on land Unrealized gain FV-OCl debt investments during 2020 V i Realized gain recycled to net income i Net income i Balance Dec. 31, 2020 i Will the sum of the Accumulated Other Comprehensive Income and Retained Earnings under IFRS equal the balance of Retained Earnings under ASPE at December 31, 2020? Prepare a continuity schedule of the related accounts to demonstrate your answer. The sum of the AOCI and Retained Earnings under IFRS equal the balance of Retained Earnings under ASPE as follows: IFRS ASPE Retained Earnings Retained Earnings $ $ $ plus on land its during 2020 i i i i $ $ $