Exercise 21-7 (Part Level Submission) Grouper Inc. follows IFRS and is adjusting and correcting Its books at the end of 2020. In reviewing its records, the following Information has been compiled: 1. In 2020, the depreciation method on plant assets should be changed from sum-of-the-years-digits to the straight-line method due to a change in pattern of usage. The assets were purchased at the beginning of 2019 for $81,000 with an estimated useful life of four years and no residual value. Grouper has already recorded 2020 depreciation expense of $24,300 related to the assets, using the sum-of-the-years'-digits method. 2. Ending Inventory for 2019 was overstated by $18,000; ending Inventory for 2020 is correctly stated. 3. The adjusted trial balance at December 31, 2018, Includes the following amounts: Cash $34,200; Inventory $100,800; Accounts Payable $43,200; Retained Earnings $64,800. 4. Dividends of $27,000 and $22,500 were declared and paid on December 31, 2020, and December 31, 2019, respectively. 5. Share capital of $27,000 consists of 18,000 common shares outstanding since the company's inception. Grouper's statement of financial position and income statement are as follows at December 31, 2019 and 2020, before any corrections related to the Information above. The December 31, 2020 statements are in draft form only and the 2020 accounts have not yet been closed. GROUPER INC. Statement of Financial Position As at December 31, 2020 Assets 2020 2019 Cash $54,000 $30,600 Inventory 96,300 115,200 Plant assets, net 24,300 48,600 Total assets $174,600 $ 194,400 Liabilities and Shareholders' Equity Accounts payable $15,300 $ $54,900 Share capital 27,000 27,000 Retained earnings 132,300 112,500 Total liabilities and shareholders' equity $174,600 $ 194,400 GROUPER INC. Income Statement Year Ended December 31, 2020 2020 2019 Sales $305,000 $243,000 Cost of goods sold 180,000 127,800 Gross pront 126,000 115,200 Operating expenses 79,200 45,000 Net Income $46,800 $70,200 (al) Prepare the comparative Income statement for 2020. (Round earnings per share to 2 decimal places, e.g. 52.75.) GROUPER INC. Income Statement For the Years Ended December 31 2019 Restated see note Xx 2020 s Attempts: 0 of 6 used SAVE FOR LATER SUBMIT ANSWER SUBMIT ANSWER Exercise 21-7 (Part Level Submission) Grouper Inc. follows IFRS and is adjusting and correcting Its books at the end of 2020. In reviewing its records, the following Information has been compiled: 1. In 2020, the depreciation method on plant assets should be changed from sum-of-the-years-digits to the straight-line method due to a change in pattern of usage. The assets were purchased at the beginning of 2019 for $81,000 with an estimated useful life of four years and no residual value. Grouper has already recorded 2020 depreciation expense of $24,300 related to the assets, using the sum-of-the-years'-digits method. 2. Ending Inventory for 2019 was overstated by $18,000; ending Inventory for 2020 is correctly stated. 3. The adjusted trial balance at December 31, 2018, Includes the following amounts: Cash $34,200; Inventory $100,800; Accounts Payable $43,200; Retained Earnings $64,800. 4. Dividends of $27,000 and $22,500 were declared and paid on December 31, 2020, and December 31, 2019, respectively. 5. Share capital of $27,000 consists of 18,000 common shares outstanding since the company's inception. Grouper's statement of financial position and income statement are as follows at December 31, 2019 and 2020, before any corrections related to the Information above. The December 31, 2020 statements are in draft form only and the 2020 accounts have not yet been closed. GROUPER INC. Statement of Financial Position As at December 31, 2020 Assets 2020 2019 Cash $54,000 $30,600 Inventory 96,300 115,200 Plant assets, net 24,300 48,600 Total assets $174,600 $ 194,400 Liabilities and Shareholders' Equity Accounts payable $15,300 $ $54,900 Share capital 27,000 27,000 Retained earnings 132,300 112,500 Total liabilities and shareholders' equity $174,600 $ 194,400 GROUPER INC. Income Statement Year Ended December 31, 2020 2020 2019 Sales $305,000 $243,000 Cost of goods sold 180,000 127,800 Gross pront 126,000 115,200 Operating expenses 79,200 45,000 Net Income $46,800 $70,200 (al) Prepare the comparative Income statement for 2020. (Round earnings per share to 2 decimal places, e.g. 52.75.) GROUPER INC. Income Statement For the Years Ended December 31 2019 Restated see note Xx 2020 s Attempts: 0 of 6 used SAVE FOR LATER SUBMIT ANSWER SUBMIT