Chapter 7
Corporations: The Financial Statements
332
b) Prepare a statement of comprehensive income (by function) under IFRS for the year ended
December 31, 2016.
AP-3A (
2
)
Born off the coast of Mykonos, Gregory displayed an aptitude for singing at a very early age.
In high school, he joined a musical club that participated in numerous singing competitions.
Gregory wants to start his own singing school and is taking an accounting course to help him
become financially literate. He is posed with the following question on his test. Help him solve
this question.
“Nacho Libray Inc. follows ASPE and has income from operations of $200,000. Their total other
expenses amounted to $100,000 and the income tax expense was $40,000. Calculate the net
income for the year.”
AP-4A (
3
)
The following information was taken from the accounting records of Montana Inc. at May 31,
2016. Montana Inc. is a private corporation and follows ASPE.
Assume a tax rate of 37%. During the year, no shares were issued or redeemed.
Line Item
Amount
Total dividends paid
$61,000
Retained earnings, June 1, 2015
110,000
Net Income
156,000
