The following is information for Blue Spruce Corp. for the year ended December 31, 2020: Sales revenue $1,370,000 Loss on inventory due to decline in net realizable value $80,000 Unrealized gain on FV-OCl equity investments 42,000 Loss on disposal of equipment 40,000 Interest income 8,000 Depreciation expense related to buildings omitted by mistake in 2019 51,000 Cost of goods sold 822,000 Retained earnings at December 31, 2019 900,000 Selling expenses 68,500 Loss from expropriation of land 63,000 Administrative expenses 48,000 Dividends declared 41,000 Dividend revenue 23,000 The effective tax rate is 20% on all items. Blue Spruce prepares financial statements in accordance with IFRS. The FV-OCl equity investments trade on the stock exchange. Gains/losses on FV-OCI investments are not recycled through net income. ue Spruce Corp. tatement of Financial Performance For the Year Ended December 31, 2020 Sales Revenue 1370000 Cost of Goods Sold 822000 i Gross Profit/(Loss) + 548000 Operating Expenses Selling Expenses $ 68500 i Administrative Expenses 48000 i (116500) i Income from Operations 431500 Other Revenues and Gains Dividend Revenue 23000 Interest Income 8000 31000 462500 Other Expenses and Losses Loss on Inventory Due To Decline In Net Realizable Value 80000 i Loss on disposal of Equipment 40000 i Loss from Expropriation 63000 i (183000) Income before Income Tax 279500 Income Tax Expense (55900) i Net Income /(Loss) 223600 Other Comprehensive Income Items that will not be reclassified subsequently to net income or loss: Unrealized Gain on FV-OCI Investments (Net Of Income Tax) 33600 Comprehensive Income $ $ 257200 Your answer is partially correct. Prepare the retained earnings section of the statement of changes in equity for 2020. (List items that increase retained earnings first following the adjustment of prior years.) Blue Spruce Corp. Excerpt from Statement of Changes in Equity For the Year Ended December 31, 2020 Retained Earnings Balance, January 1, as reported $ 900000 Correction for Overstatement of Net Income in Prior Period (Net of Tax) (38400) Retained Earnings Balance, January 1, as restated 861600 Add : Net Income /(Loss) 223600 1085200 Less 4 : Dividends Declared (41000) i Retained Earnings Balance, December 31 $ 1044200 Your answer is partially correct. Prepare the journal entry to record the depreciation expense omitted by mistake in 2019. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Retained Earnings 38400 Income Tax Payable / Receivable 9600 Accumulated Depreciation - Buildings 48000