P12.3 Gelato Corporation, a private entity reporting under ASPE, was incorporated on January 3, 2019. The corporation's nancial statements for its rst year of operations were not examined by a public accountant. You have been engaged to audit the nancial statements for the year ended December 31, 2020, and your audit is almost complete. The corporation's trial balance is as follows: Gelato Corporation Trial Balance December 31, 2020 Debit Credit Cash $ 57,000 Accounts receivable 87,000 Allowance for doubtful accounts $ 1,500 Inventory 60,200 Machinery 82,000 Equipment 37,000 Accumulated depreciation 26,200 Intangible assetspatents 128,200 Leasehold improvements 36,100 Prepaid expenses 13,000 Goodwill 30,000 Intangible assetslicensing agreement No. 1 60,000 Intangible assetslicensing agreement No. 2 56,000 Accounts payable 93,000 Unearned revenue 17,280 Common shares 300,000 Retained earnings, January 1, 2020 173,020 Sales 720,000 Cost of goods sold 475,000 Selling expenses 180,000 Interest expense 29,500 Totals $1,331,000 $1,331,000