Required

Prepare the 2023 classified Statement of Financial Position in good format. Fix all errors in classification, terminology, and numbers. Do not simply rewrite the poor-quality balance sheet above. Present a numerically correct balance sheet with good format that complies with IFRS classifications, terminology, and standards. Carefully consider each line of the statement, and correct the statement so that it conforms with current standards. Use a Word table with two number columns. (24 marks)

Question 2 (18 marks)

Presented below is information for Drumline Company for 2023:

Collections of Accounts Receivable	$1,100,000
Retained Earnings, January 1, 2023	800,000
Sales Revenue	1,900,000
Selling and Administrative Expenses	290,000
Loss from Flood Damage	350,000
Dividends paid	34,000
Cost of Goods Sold	1,100,000
Loss resulting from calculation error on depreciation charge in 2021 (pre-tax)	460,000
Interest Revenue	180,000
Interest Expense	120,000
Loss on Loan Settlement	340,000
Gain on Foreign Currency	220,000

The following additional information is provided:

Early in 2023, Drumline Company changed depreciation methods for its plant assets from the double-declining-balance to the straight-line method. The assets affected were purchased at the beginning of 2018 for $200,000, had no residual value, and had useful lives of 10 years. Depreciation expense of $20,000 is included in the selling and administrative expenses of $290,000.

On September 1, 2023, Drumline Company sold one of its segments (product line) to Chord Company for a pre-tax gain of $550,000. During the period January 1 to August 31, the discontinued segment incurred a pre-tax operating loss of $480,000. This loss is not included in any of the numbers shown above.

Required

Prepare a multi-step Statement of Income in good form for 2023. Assume a 20% income tax rate and that 20,000 common shares were outstanding during the year. As with the Statement of Financial Position, ensure that you use proper format, including classification of items and correct terminology for section headings and subtotal amounts. Drumline Company follows IFRS. (18 marks)