Today is January $2,2024.$ The following statements were prepared for Jenelle Bapan Limited $("$JBL$"),$ a

company using IFRS, by the company's new bookkeeper:

Jenelle Bapan Limited

Comprehensive Income Page

For the Year Ended December $31,2023$

$($in thousands of dollars$)$

Income:

Sales revenue $($includes $$280$ pertaining to the transportation division$)$

Gain on expropriation of land by government $($A$)$

Expenses:

Depreciation $($B$)$

Cost of goods sold $($C$)$

Income tax $($D$)$

Advertising $($E$)$

Other $($F$)$

Regular Income $($Loss$)$

Jenelle Bapan Limited

Equity Statement

For the Year Ended December $31,2023$

$($in thousands of dollars$)$

Opening Retained Earnings, January $1$

Regular income $($loss$)$

Dividends $($G$)$

Other comprehensive income relating to

investments $($before income taxes$)$

Issuance of new shares

Ending Retained Earnings, December $31$

NOTES $($all dollar amounts are in thousands of dollars$)$:

$($A$)$ In December $2023,$ the provincial government expropriated some land $($original cost of $$60)$ from JBL$.$

The land was needed to provide a thoroughfare for a major road bypass around the city. Under the

terms of the expropriation, the government paid $$150$ to JBL and took possession of the land.

$($B$)$ The new bookkeeper neglected to record depreciation expense on a new item of equipment that was

purchased on January $1,2023.$ The original cost of the equipment was $$20$ and it should be

depreciated at a rate of $10\%$ per annum using a declining$-$balance method. The equipment is expected

to have a residual value of $$3$ at the end of its useful life, which is $20$ years.

$($C$)$ Goods costing $$50$ were purchased from Supplier Company, FOB Shipping point. It was shipped on

December $28,2023$ and arrived at JBL$\text{'}$s warehouse on January $4,2024.$ The invoice arrived December

$28,2023$ and the bookkeeper recorded the purchase. JBL uses a periodic inventory system and hence

determined ending inventory based on a physical count at the end of the business day on December

$($D$)$ JBL pays income tax at a rate of $42\%$ on all income except for the gain on the expropriation of the land

that is taxed at a rate of $30\%.$ Assume that all revenues, expenses, gains, and losses $($including other

comprehensive income$)$ are taxable or deductible for income tax purposes. The reported income tax

expense of $$57$ reflects cash taxes paid this year but which were accrued in prior year.

$($E$)$ The advertising expenses relate to a payment made to a marketing agency on December $27,2023$ for

services that will be rendered in March $2024.$

$($F$)$ Details of the amounts recorded in "other expenses" were as follows:

The transportation division had been losing money for the last three years. Management decided to

shut down the division to avoid future losses.

$($G$)$ The company paid $$25$ to a major shareholder for management services rendered. Since the payment

was made to a shareholder, the bookkeeper recorded it as dividends paid.

$($H$)$ Assume that all expenses, other than Cost of Goods Sold, are part of the Administration "function."

Required:

$($a$)$ Assume that the transportation division meets the definition of a "discontinued operation." Prepare, in good

form, a multiple$-$step comprehensive income statement for JBL for $2023.$ JBL categorizes its expenses by

function $($as opposed to nature$).$ Correct any deficiencies and$/$or errors contained in the draft statements

prepared by the new bookkeeper.

$($b$)$ Assume that, in addition to the information given in the original question above, you identify that JBL had

made a mistake in the $2021$ financial statements. Depreciation expense of $$38$ was mistakenly recorded

three times in that year. Prepare only the Retained Earnings portion of the Statement of Changes in Equity

for $2023.$ Use good form.