Joe Schreiner, controller for Culver Company Inc., recently prepared the company's income statement and statement of changes in equity for 2020. Schreiner believes that the statements are a fair presentation of the company's financial progress during the current period, but he also admits that he has not examined any recent professional pronouncements on accounting. CULVER COMPANY INC. Income Statement For the Year Ended December 31, 2020 Sales revenues $ 355.000 Cost of goods sold 191,000 Gross profit 164,000 Selling expenses 44,980 Administrative expenses 30,000 74.980 Income before income tax 89,020 Other revenues and gains Unrealized gain on FV-OCl equity investments 38,700 Dividend revenue 42.700 170.420 Income tax expense 51.126 Net income $ 119,294 $ 212,000 CULVER COMPANY INC Excerpt from Statement of Changes in Equity For the Year Ended December 31, 2020 Retained earnings, January 1, 2020 Add: Net income for 2020 $ 119,294 Gain on disposal of long-term investments 31.600 $ 150,894 Deduct Loss on expropriation 12,800 Correction of mathematical error (net of tax) 17.005 (29,805) Retained earnings. December 31, 2020 121,089 $ 333,089