Pronghorn Inc. reported income from continuing operations before tax of $$2,595,500$ during $2023.$ Additional transactions occurring

in $2023$ but not included in the $$2,595,500$ were as follows:

The corporation experienced an insured flood loss of $$116,000$ during the year.

At the beginning of $2021,$ the corporation purchased a machine for $$72,000($residual value of $$18,000)$ that has a useful life

of six years. The bookkeeper used straight$-$line depreciation for $2021,2022,$ and $2023,$ but failed to deduct the residual value

in calculating the depreciable amount.

The sale of FV$-$NI investments resulted in a loss of $$155,150.$

When its president died, the corporation gained $$145,000$ from an insurance policy. The cash surrender value of this policy

had been carried on the books as an investment in the amount of $$66,700.($The gain is non$-$taxable.$)$

The corporation disposed of its recreational division at a loss of $$166,750$ before tax. Assume that this transaction meets the

criteria for accounting treatment as discontinued operations.

The corporation decided to change its method of inventory pricing from average cost to the FIFO method. The effect of this

change on prior years is to decrease $2022$ income by $$29,000$ before taxes. The FIFO method has been used for $2023.$Prepare an income statement for the year $2023,$ starting with income from continuing operations before income tax. Calculate

earnings per share as required under IFRS. There were $138,440$ common shares outstanding during the year. $($Assume a tax rate

of $30\%$ on all items, unless they are noted as being non$-$taxable.$)($Round answers to $0$ decimal places, e$.$g$.5,275.$ Round EPS answers to

$2$ decimal places, e$.$g$.52\mathrm{.}75.)$

Pronghorn Inc.

Income Statement $($Partial$)$

For the Year Ended December $31,2023($b$)$

Assume that beginning retained earnings for $2023$ is $$3,683,000$ and that dividends of $$253,750$ were declared during the year.

Prepare the retained earnings portion of the statement of changes in equity for $2023.($Round answers to $0$ decimal places, e$.$g$.$

$1,525.$ List items that increase retained earnings first. Enter negative amounts using either a negative sign preceding the number e$.$g$.-45$ or

parentheses e$.$g$.(45).)$

Pronghorn Inc.

Excerpt from Statement of Changes in Equity

For the Year Ended December $31,2023$