Pronghorn Corporation, a clothing retailer, had income from operations (before tax) of $405,000, and recorded the following before-tax gains/(losses) for the year ended December 31, 2020: Gain on disposal of equipment 29,160 Unrealized (loss)/gain on FV-NI investments (58,320) (Loss)/gain on disposal of building (73,440) Gain on disposal of FV-NI investments 35,640 Pronghorn also had the following account balances as at January 1, 2020: Retained earnings Accumulated other comprehensive income (this was due to a revaluation surplus on land) Accumulated other comprehensive income (this was due to gains on FV-OCI investments) $442,800 91,280 59,400 As at January 1, 2020, Pronghorn had one piece of land that had an original cost of $142,000 that it accounted for using the revaluation model. It was most recently revalued to fair value on December 31, 2019, when its carrying amount was adjusted to fair value of $233,280. In January 2020, the piece of land was sold for proceeds of $233,280. In applying the revaluation model, Pronghorn maintains the balance in the Revaluation Surplus (OCI) account until the asset is retired or disposed of. In 2015, Pronghorn purchased a portfolio of debt investments that the company intended to hold for longer term and classified the portfolio of investments as fair value through other comprehensive income (FV-OCI) with gains/losses recycled through net income. The investments in the portfolio are traded in an active market. Pronghorn records unrealized gains and losses on these investments as OCI, and then books these gains and losses to net income when they are impaired or sold. The portfolio's carrying amount on December 31, 2019, was $118,800. The entire portfolio was sold in November 2020 for proceeds of $136,080. Pronghorn's income tax expense for 2020 was $106,920. Pronghorn prepares financial statements in accordance with IFRS. Calculate net income for the year ended December 31, 2020, if Pronghorn prepares financial statements in accordance with ASPE. Pronghorn's income tax expense would not change. Pronghorn Corporation Partial Statement of Income For the year Ended December 31, 2020 Beginning balance, January 1 442800 Other Revenues and Gains Gain on disposal of Equipment 29,160 Gain on disposal of FV-NI Investments 35,640 X Gain on Disposal of Building 76680 Total Other Revenues and Gains 141480 584280 Other Expenses and Losses Unrealized Loss on FV-NI Investments 58,320 TLoss on Disposal of Building 73,440 Total Other Expenses and Losses 131760 x Income before Income Tax 452520 Income Tax Expense 106,920 Income from Operations 345600 Calculate retained earnings as at December 31, 2020, if Pronghorn prepares financial statements in accordance with ASPE. Assume that under ASPE, Pronghorn's retained earnings at January 1, 2020, would be $502,200. Pronghorn Corporation Statement of Retained Earnings x For the year Ended December 31, 2020 V Beginning balance, January 1 442,800 TAdd Net Income / (Loss) 454160 X Ending balance, December 31 896960 LINK TO TEXT LINK TO TEXT Your answer is partially correct. Try again. Will the sum of the Accumulated Other Comprehensive Income and Retained Earnings under IFRS equal the balance of Retained Earnings under ASPE at December 31, 2020? Prepare a continuity schedule of the related accounts to demonstrate your answer. The sum of the AOCI and Retained Earnings under IFRS equal the balance of Retained Earnings under ASPE as follows: IFRS AOCI ASPE Retained Earnings Retained Earnings IX Balance Jan. 1, 2020 150680 442800 442800 X Transfer of accumulated revaluation surplus on land (91,280) 0 91280 x X TUnrealized gain FV-OCI debt investments during 2020 0 17280 M Realized gain recycled to net income 35640 Net income 307800 454160 x Balance Dec. 31, 2020 95040 750600 896960 mm