please it's urgent!! Thanku.

1 EC Construction Ltd. (EC) has 50.000 common shares outstanding in public hands. The balance of retained earnings at the beginning of 20X7 was $2.740.000. On 15 December 20X7 EC declared dividends of $2 per share payable on 5 January 20X8. Income before income tax was $628,000 based on the records of the company's accountant. Additional information on selected transactions/events is provided below: 100 points a. At the beginning of 20X6. EC purchased some equipment for $258.000 (salvage value of $62,000) that had a useful life of 5 years. The accountant used a 40% declining-balance method of depreciation but mistakenly deducted the salvage value in calculating depreciation expense in 20x6 and 20x7. b. As a result of an income tax audit of 20x5 taxable income. $102.000 of expenses claimed as deductible expenses for tax purposes was disallowed by the CRA. This error cost the company $61.600 in additional tax. This amount was paid in 20x7 but has been debited to a prepaid expense account. C. EC contracted to build an office building for RD Corp. The construction began in 20x6 and will be completed in 20X8. The contract has a price of $38 million. The following data (in millions of dollars) relate to the construction period to date: $ 10 Costs incurred to date Estimated costs to complete Progress billings during the year Cash collected on billings during the year 20x6 2ex $ 13 15 1e 8 13 6 12 The accountant used the completed-contract method in accounting for this contract, which is not permitted for a public company. d. On 1 January 20X7, EC purchased as a long-term investment. 19% of the common shares of One Ltd. for $83.000. On that date, the fair value of identifiable assets of One was $248.000 and was equal to the book value of identifiable assets. Goodwill has not been impaired. No investment income has been recorded. One paid no dividends, but reported income of $50.000 in the year. EC has significant influence over One. e. EC has an effective tax rate of 25%. Required: 1. Calculate 20x7 earnings for EC. (Do not round Intermediate calculations. Enter answer in whole dollar, not in millions.) Answer is complete and correct. Earnings for EC S 2.884.060 2. Prepare the retained earnings section of the comparative statement of changes in equity. (Enter answer in whole dollar, not in millions.) Answer is complete but not entirely correct. EC Construction Limited Statement of Changes in Equity--Retained Earnings for the Year Ended 31 December 20X7 20X7 Opening retained earnings, 1 January, as previously $ 2.740.000 reported Cumulative effect of a change in accounting policies 3.400,000 Opening retained earnings, restated $ 6,140,000 Net income 2.864,060 Dividends (100.000) Closing retained earnings, 31 December $ 8.904,060 1 EC Construction Ltd. (EC) has 50.000 common shares outstanding in public hands. The balance of retained earnings at the beginning of 20X7 was $2.740.000. On 15 December 20X7 EC declared dividends of $2 per share payable on 5 January 20X8. Income before income tax was $628,000 based on the records of the company's accountant. Additional information on selected transactions/events is provided below: 100 points a. At the beginning of 20X6. EC purchased some equipment for $258.000 (salvage value of $62,000) that had a useful life of 5 years. The accountant used a 40% declining-balance method of depreciation but mistakenly deducted the salvage value in calculating depreciation expense in 20x6 and 20x7. b. As a result of an income tax audit of 20x5 taxable income. $102.000 of expenses claimed as deductible expenses for tax purposes was disallowed by the CRA. This error cost the company $61.600 in additional tax. This amount was paid in 20x7 but has been debited to a prepaid expense account. C. EC contracted to build an office building for RD Corp. The construction began in 20x6 and will be completed in 20X8. The contract has a price of $38 million. The following data (in millions of dollars) relate to the construction period to date: $ 10 Costs incurred to date Estimated costs to complete Progress billings during the year Cash collected on billings during the year 20x6 2ex $ 13 15 1e 8 13 6 12 The accountant used the completed-contract method in accounting for this contract, which is not permitted for a public company. d. On 1 January 20X7, EC purchased as a long-term investment. 19% of the common shares of One Ltd. for $83.000. On that date, the fair value of identifiable assets of One was $248.000 and was equal to the book value of identifiable assets. Goodwill has not been impaired. No investment income has been recorded. One paid no dividends, but reported income of $50.000 in the year. EC has significant influence over One. e. EC has an effective tax rate of 25%. Required: 1. Calculate 20x7 earnings for EC. (Do not round Intermediate calculations. Enter answer in whole dollar, not in millions.) Answer is complete and correct. Earnings for EC S 2.884.060 2. Prepare the retained earnings section of the comparative statement of changes in equity. (Enter answer in whole dollar, not in millions.) Answer is complete but not entirely correct. EC Construction Limited Statement of Changes in Equity--Retained Earnings for the Year Ended 31 December 20X7 20X7 Opening retained earnings, 1 January, as previously $ 2.740.000 reported Cumulative effect of a change in accounting policies 3.400,000 Opening retained earnings, restated $ 6,140,000 Net income 2.864,060 Dividends (100.000) Closing retained earnings, 31 December $ 8.904,060