Need the calculations. Question $2-$ Ingalls corporation

Ingalls corporation follows IFRS. Ingalls has prepared the following summary comparative income

statements for the years ended December $31,{2017}_{?}$ and $2016.$

Additional information as of December $31,2017$

An analysis of collections and losses on accounts receivable during the past $2$ years indicates a

drop in anticipated losses because of bad debts. After consulting with management, it was

agreed to reduce the estimate of bad debts from $4\%$ to $3\%$ of accounts receivable. Below is

splect information from the balance sheets prepared before the decision was made.

An analysis of the investments account revealed that these were $FV-$OCl investments acquired in

The total market value for the investments at the end of $2016$ was $$81,000$ and at the end

of $2017$$$62,000.$ On the $2016$ and $2017$ balance sheets, the investments were recorded at

$$78,000.$

The merchandise inventory at December $31,2016$ was overstated by $$4,000$ and the

merchandise inventory at December $31,2017$ was overstated by $$6,100.$

On January $1,2016,$ equipment costing $$12,000$ with an estimated useful life of $10$ years and a

residual value of $$1,000$ was charged to operating expenses. Ingalls uses the straight$-$line

method.

In $2017,$ fully depreciated equipment $($with no residual value$)$ that originally cost $$17,500$ was

sold as scrap for $$2,500.$ Ingalls credited the cash proceeds of $$2,500$ to equipment.

An analysis of $2016$ operating expenses revealed that Ingalls charged a $3-$year insurance

premium of $$2,700$ on January $1,2016.$

Prepare a restated income statement. Show your computations. For this part only, assume an income

tax rate of $3n\%$

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