Question 1 (30 marks) Alto Inc. has the following balances of selected accounts: Net sales Cost of goods sold Selling expenses Administrative expenses Loss on sale of equipment Loss on impairment of intangibles. Loss on disposal of discontinued operations Retained earnings at 1 Jan 2019 Dividends on ordinary and preference shares $640,000 $500,000 $30,000 $32,500 $17,000 $8,500 $15,000 $141,000 $12,200 Additional facts are as follows: The accountant has included interest expense of $5,000 in the administrative expenses. There is a change of depreciation method from straight line to double declining balance method, cumulative profits in the prior years would decrease by $17,000. Dividend of $2,000 was paid to the preference shareholders. Income from continuing operation for the year ended 31 December 2019 was $2 per share. Tax rate is 30% of income. Required Prepare an income statement (22 marks) and statement of retained earnings (8 marks) for the year ended 31 December 2019 for Alto Inc. that is presented in accordance with IFRS (including format and terminology). Question 1 (30 marks) Alto Inc. has the following balances of selected accounts: Net sales Cost of goods sold Selling expenses Administrative expenses Loss on sale of equipment Loss on impairment of intangibles. Loss on disposal of discontinued operations Retained earnings at 1 Jan 2019 Dividends on ordinary and preference shares $640,000 $500,000 $30,000 $32,500 $17,000 $8,500 $15,000 $141,000 $12,200 Additional facts are as follows: The accountant has included interest expense of $5,000 in the administrative expenses. There is a change of depreciation method from straight line to double declining balance method, cumulative profits in the prior years would decrease by $17,000. Dividend of $2,000 was paid to the preference shareholders. Income from continuing operation for the year ended 31 December 2019 was $2 per share. Tax rate is 30% of income. Required Prepare an income statement (22 marks) and statement of retained earnings (8 marks) for the year ended 31 December 2019 for Alto Inc. that is presented in accordance with IFRS (including format and terminology)