Peanut Corporation is a public corporation using IFRS. An analysis of the accounts and discussions with company officials included the following:

	1-Jan-17	31-Dec-17		1-Jan-17	31-Dec-17
Accounts receivable		102,000	Income taxes payable	20,375	?
Cost of goods sold		365,000	Common shares	200,000	226,000
Dividend revenue		9,000	Long term note payable (due Oct 1, 2021)	158,000	100,000
Selling expenses		74,300	Machinery and equipment	283,400	325,000
Unearned revenue		3,000	Common share dividends declared and paid		6,000
Cash	72,900	60,000	Retained earnings	155,500	233,125
Interest expense		8,500	General and administrative expenses		194,000
Land		170,000	Allowance for doubtful accounts		5,000
Loss on sale of equipment		3,700	Accumulated depreciation - machinery and equipment	80,000	90,000
Patent	240,000	250,000	Accumulated amortization - patent	140,000	150,000
Supplies inventory		40,000	Preferred shares (5% cumulative 180 issued)	180,000	180,000
Sales		760,000	Preferred share dividends declared and paid		9,000
Accounts payable		31,000	FV-OCI Investments		?
Inventory		62,500	Accumulated other comprehensive income	nil	?

Unless indicated otherwise, you may assume a 25% income tax rate. No provision has been made for 2017 income tax expense and it is necessary to record the provision to complete the financial statements. The amount of the provision should be booked to income taxes payable. This provision represents the December 31, 2017 income taxes payable balance.

General and administrative expenses include depreciation of $22,500 and amortization of $10,000.

Additional information

Equipment with an original cost of $31,200 was sold for $15,000 during 2017. The equipment had been depreciated to the date of sale by $12,500. This sale resulted in a $3,700 loss.

On May 1, 2017, the company issued 6,000 common shares for $26,000 cash. As a result, there were 27,000 common shares outstanding at December 31, 2017.

Patents valued at $10,000 were purchased during the year in exchange for a long-term note.

During the year, the company purchased an investment for $39,500. The company classified this investment as FV-OCI and long term. The company has not booked any year end adjusting entry. At December 31, 2017, the investment's fair value was 42,500. NO income tax provision should be made on the unrealized gain or loss.

Long-term notes totaling $10,000 were issued in exchange for the patent purchased for the same amount during the year.

Changes in current assets and current liabilities, other than cash and income taxes payable are indicated below:

Increase in accounts receivable	11,300
Decrease in inventory	13,500
Decrease in supplies inventory	10,000
Decrease in accounts payable	4,125
Decrease in unearned revenue	6,000

Required: (a to d) (44 marks)
Prepare the following financial statements IN GOOD FORM for Peanut Corporation for the year ended December 31, 2017. Provide support for all calculations so part marks can be awarded. These calculations can be completed in the space provided on the last page.

1. Statement of Comprehensive Income (multi-step), including the adjustments for the income tax provision and the FV-OCI investment
2. Statement of Changes in Shareholders' Equity