Ice Industries Inc. showed the following equity account balances at December 31, 2019:

Common shares, unlimited shares authorized,70,000 shares issued and outstanding

$

816,000

Retained earnings

112,800

The company issued long-term debt during 2020 that requires a retained earnings restriction of $72,000. Share dividends declared but not distributed during 2020 totaled 7,000 shares capitalized for a total of $84,000.

Required:

a.Prepare a statement of changes in equity for the year ended December 31, 2020, assuming profit earned during the year was $124,800.(Negative answers should be indicated by a minus sign.)

b.What is the maximum amount of dividends that the company can declare during 2021?