Reference no: EM132708730
Question - Presented below is information which relates to Sandhill Company, a Canadian public corporation traded on the Toronto Stock Exchange, for 2020.
Net income $449,000
Retained earnings, January 1, 2020 785,000
Cash dividends declared on common shares 35,000
Correction of calculation error depreciation understatement in 2016 (pre-tax) 471,000
Gain on FV-OCI investments (net of tax) 207,000
Proceeds from issuance of Sandhill common shares 56,000
Accumulated other comprehensive income, January 1, 2020 17,000
On January 1, 2020, Sandhill had 22,000 common shares outstanding with a capital balance of $550,000. During the year, Sandhill Company issued an additional 2,000 common shares.
Required - Prepare in good form a statement of shareholders equity for the year ended December 31, 2020. Sandhill's income tax rate is 20%.