Reference no: EM132647386

The equity accounts of Culver Corp. as at January 1, 2020, were as follows:

Retained earnings, January 1, 2020    $214,700

Common shares                             600,000

Preferred shares                            250,000

Contributed surplus                          290,000

Accumulated other comprehensive income  525,000

During 2020, the following transactions took place:

Adjustment to correct error in prior years (gain net of tax $20,000) $48,000

Unrealized gains on FV-OCI equity investments (net of tax $34,000) 82,000

Dividends: Common shares 120,000

Preferred shares 62,000

Issue of equity:

Common shares 290,000

Preferred shares 5,000

Net income 323,000

Question 1: Prepare statement of changes in equity for the year ended December 31, 2020. The company follows IFRS. Assume that equity investments are accounted for as FV-OCI investments, with gains/losses not recycled through net income