Question 4 (13 marks) The following are the statement of financial position and excerpts from the notes to the financial statements for Renforth Ltd. (Renforth), a public company, for the years ended December 31, 2021 and 2020: Assets Renforth Ltd. Statement of financial position As at December 31 Cash Accounts receivable Prepaid expenses Investments* Property, plant, and equipment (PPE) Accumulated depreciation - PPE Total assets 2021 2020 $ 3,165,000 $ 728,000 112,000 396,000 30,000 24,000 1,035,000 245,000 2,623,000 2,634,000 (1,290,000) (921,000) Liabilities and shareholders' equity Total liabilities Accounts payable Shareholders' equity Common shares Retained earnings Total shareholders' equity 5,675,000 $3,106,000 $ 727,000 $ 386.000 727,000 386,000 2,833,000 2,145,000 2.115,000 575.000 4,948,000 2,720,000 Total liabilities and shareholders' equity $ 5,675,000 $3,106,000 *Investments are classified as fair value through profit and loss (FVPL). The following are excerpts from the notes to the financial statements for Renforth for the years ended December 31, 2021 and 2020: FVPL investments FVPL investments consist of bonds that are issued by various financial institutions. During 2021, Renforth earned and received $101,000 in interest income on these investments. During 2021, Renforth sold certain investments with a carrying value of $256,000 for cash proceeds of $258,000, and purchased new investments for a total of $1,046,000. Renforth considers interest received from investments to be an investing activity. PPE In 2021, equipment with a cost of $335,000 and an accumulated depreciation of $109,000 was sold for $201,000 cash. New equipment was purchased with cash during the year.