Monty 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. 2. 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 $86,400 with an estimated useful life of four years and no residual value. Monty has already recorded 2020 depreciation expense of $25,920 related to the assets, using the sum-of-the-years'digits method. Ending inventory for 2019 was overstated by $19,200; ending inventory for 2020 is correctly stated. The adjusted trial balance at December 31, 2018, includes the following amounts: Cash $36,480; Inventory $107,520; Accounts Payable $46,080; Retained Earnings $69,120. Dividends of $28,800 and $24,000 were declared and paid on December 31, 2020, and December 31, 2019, respectively. Share capital of $28,800 consists of 19,200 common shares outstanding since the company's inception. 3. 4. 5. Monty'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. MONTY INC. Statement of Financial Position As at December 31, 2020 Assets 2020 2019 Cash $57,600 $32,640 Inventory 102.720 122,880 Plant assets, net 25.920 51,840 Total assets $186,240 $207,360 $16,320 $58,560 Liabilities and Shareholders' Equity Accounts payable Share capital Retained earnings Total liabilities and shareholders' equity 28.800 28,800 141.120 120,000 $186,240 $207,360 MONTY INC. Income Statement Year Ended December 31, 2020 2020 2019 $326,400 $259,200 Sales Cost of goods sold Gross profit 192.000 136,320 134,400 122,880 Operating expenses 84,480 48,000 Net income $49.920 $74,880 (a1) Prepare the comparative income statement for 2020. (Round earnings per share to 2 decimal places, e.g. 52.75.) MONTY INC. Income Statement For the Years Ended December 31 2019 Restated see note XX 2020 $ $ $ $ $