MGT220 Feng Chen Tutorial 2 1. The following is information for...

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MGT220 Feng Chen Tutorial 2 1. The following is information for Gottlieb Corp. for the year ended December 31, 2017: Net sales revenue $1,300,0 Loss on inventory due to decline 00 in net Unrealized gain on realizable value (NRV) $ FV-OCI 80,000 investments 42,000 Loss on sale of equipment 35,000 Interest income 7,000 Depreciation expense related to buildings Cost of goods sold 780,000 omitted by mistake in 2016 55,000 Selling expenses 65,000 Retained earnings at December 980,00 31, 2016 0 Administrative 48,000 Loss-other (due to expropriation 60,000 expenses of land) Dividend revenue 20,000 Dividends declared 45,000 The effective tax rate is 25% on all items. Gottlieb prepares financial statements in accordance with IFRS. The FV-OCI investments trade on the stock exchange. Gains/losses on FV-OCI investments are recycled through net income. Required: a. Prepare a multiple-step statement of comprehensive income for 2017, showing expenses by function. Ignore calculation of EPS. b. Prepare the retained earnings section of the statement of changes in equity for 2017. c. Prepare the journal entry to record the depreciation expense omitted by mistake in 2016. d. How should Gottlieb account for the unrealized gain on FV-OCI investments if it prepares financial statements in accordance with ASPE? How would Gottlieb's retained earnings balance at December 31, 2016, be different if financial statements in all previous years had been prepared in accordance with ASPE?

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