Tonoma Corporation, a public company that follows IFRS, is preparing its December 31, 2011 financial statements. The

Question:

Tonoma Corporation, a public company that follows IFRS, is preparing its December 31, 2011 financial statements. The following two events occurred between December 31, 2011, and March 10, 2012, when the statements were completed and authorized for issue. (a) A liability, estimated at $140,000 at December 31, 2011, was settled on February 26, 2012, at $190,000.
(b) A flood loss of $80,000 occurred on March 1, 2012.
What effect do these subsequent events have on 2011 net income?