Please use the info from the left to fill out the boxes on the excel on the right

a/s Equity at 12/31/2020 Corp prepares its consolidated financial statements in accordance with U S. GAAP At 1/1/2020, the company had total equity of SI retained earnings of SI and common stock of SIOC,OOff For the year ended 12/31/2020, the company reported net income 10 (v) Increase NSV (carrying value) to S3m DR Office building Sl_2m CR Revaluation Reserve SI .2m Income Statement 12/31/20 Net income for v/e 12/31/2020 800,000 Reta i ned earmngs Revaluation rese of $800,000 The company wishes to attract new investors to help finance a major expansion program. As the targeted investors are based in Europe, you have been asked to prepare reconciliation schedules that covert the company's yearly Income for 2020 and the December 31, 2020, stockholders: equity section of its balance sheet from LI_S G*P to IFRS The following items have been identified as being potentialy material for your reconciliation exercise At 12/31/2020 the historic cost of inventory under both the LIFO and FIFO methods was $320,000 The IJS GAAP accounts use LIFO, and the IFRS reconciliation will use FIFO At 12/31/2020, the U S GAAP accounts impaired inventory to At year end, this inventor,' had a 5280.000 replacement cost, an estimated selling of $315,000: with $15,000 cost to sell. The normal profit margin on inventory is 10% The balance sheet at 12/31/2020 includes offce property acquired during 2020 at a historical cost of Accumulated depreciation of $200,000 had been charged on these properties at the balance sheet date The fair market value of these properties as at 12/31/2020 was Assume that the external investors prefer IAS IS's fair value option for measuring assets Under LIS G*P and IFRS depreciate the property by $200,000 DR depreciation expense $200,000 III _ S 4 8 15 16 Transaction Reported under US. GAAP (iii) Net income under IFRS for 2019 Total equity under IFRS at 12/31/2019 Common stock 100,000 The company Incurred research and development costs of $800,000 during 2020. Of this amount, related to the development of a new production process that fulfilled all ofthe criteria for recognizing an intangible asset under IAS 3& As of the end of 2020: development of the new production process was incomplete CR Acc $200,000 AS 16? How to revalue the asset? Reset or cancel the acc ggpnat 12,81 /2020 DR Acc GpnS200,ooo CR Office building 200,000 Entry to get the office in the accounts DR ofte bu"ding 52m CR cash NSV at the revaluation date Recognize the FV of S3m Unrealized gain SI 2m Development 5400, 000 US GAAP expense all of this! AS 38 Intangibles must capitalize development costs that meet the recognition criteria R expensed D 5400.000 capitalized, rather than expensed. Amortized once the process/productis ready for use During 2018, the company incurred $600,000 of development costs related to a new product This expenditure fulfilled all of the criteria for recognizing an intangible asset under IAS 3& The company started selling the product in January 2019 (hint: when do we start to amortize the development asset?) and expects it to be marketable for S years. US GAAP expense in 2018 IFRS capitalize $600,000 in amortize the asset over its useful life. Asset $600,000 t life = $120,000 per year amortization starting in the year the product was brought to market,'useff The entity owns a plot of land that held as an investment property. The historical cost of the land was S400,OOff A real estate broker conducted a comparative analysis on 12/31/2020 and determined the fair market value of the land was sgoo,00ff AS 40 unreanzed gains go to the income statement SSOO 1000 credited to income under IFRS = S2m less so_2m = 51.8m