View Policies Current Attempt in Progress Flounder Corporation was incorporated and began business on January 1, 2020. It has been successful and now requires a bank loan for additional capital to finance an expansion. The bank has requested an audited income statement for the year 2020 using IFRS. The accountant for Flounder Corporation provides you with the following income statement, which Flounder plans to submit to the bank: Flounder Corporation Income Statement Sales revenue Dividend revenue Gain on recovery of earthquake loss (unusual) Unrealized holding gain on FV-OCI equity investments $ 846,000 32,000 25,000 4,000 907,000 Less: Selling expenses $ 101,000 Cost of goods sold 516,000 Advertising expense 12,000 Loss on inventory due to decline in net realizable value 33,000 Loss on discontinued operations 48,000 Administrative expenses 73,000 783,000 Income before income tax 124,000 Income tax expense 24,800 Net income $ 99,200 Flounder had 100,000 common shares outstanding during the year and has an effective tax rate of 20%. Gains/losses on FV-OCI equity investments are not recycled through net income. (b)