Prepare the income statement for Grouper. The effective tax rate for past years was 40%. (Hint: A change in depreciation methoc Grouper Corporation began operations on January 1, 2020. Recently the corporation has had several unusual accounting problems related to the presentation of its income statement for financial reporting purposes. The company follows ASPE. You are an accountant for Grouper and have been asked to examine the following data: This additional information was also provided: 1. The controller mentioned that the corporation has had difficulty collecting certain receivables. For this reason, the bad debt accrual was increased from 1% to 2% of sales revenue. The controller estimates that, if this rate had been used in past periods, an additional $80,400 worth of expense would have been charged. The bad debt expense for the current period was calculated using the new rate and is part of selling and administrative expense. 2. There were 500,000 common shares outstanding at the end of 2023. No additional shares were purchased or sold in 2023. 3. The following items were not included in the income statement: - Inventory in the amount of $114,000 was obsolete. - The company announced plans to dispose of a recognized segment. For 2023, the segment had a loss, net of tax, of - $166,800. 4. Retained earnings as at January 1,2023 , were $2.7 million. Cash dividends of $700,000 were paid in 2023 . 5. In January 2023, Grouper changed its method of depreciating plant assets from the straight-line method to the decliningbalance method to present more relevant information. The controller has prepared a schedule that shows what the depreciation expense would have been in previous periods if the declining-balance method had been used. 6. In 2023 , Grouper discovered that in 2022 it had failed to record $30,000 as an expense for sales commissions. The sales commissions for 2022 were included in the 2023 expenses. Prepare the income statement for Grouper. The effective tax rate for past years was 40%. (Hint: A change in depreciation methoc Grouper Corporation began operations on January 1, 2020. Recently the corporation has had several unusual accounting problems related to the presentation of its income statement for financial reporting purposes. The company follows ASPE. You are an accountant for Grouper and have been asked to examine the following data: This additional information was also provided: 1. The controller mentioned that the corporation has had difficulty collecting certain receivables. For this reason, the bad debt accrual was increased from 1% to 2% of sales revenue. The controller estimates that, if this rate had been used in past periods, an additional $80,400 worth of expense would have been charged. The bad debt expense for the current period was calculated using the new rate and is part of selling and administrative expense. 2. There were 500,000 common shares outstanding at the end of 2023. No additional shares were purchased or sold in 2023. 3. The following items were not included in the income statement: - Inventory in the amount of $114,000 was obsolete. - The company announced plans to dispose of a recognized segment. For 2023, the segment had a loss, net of tax, of - $166,800. 4. Retained earnings as at January 1,2023 , were $2.7 million. Cash dividends of $700,000 were paid in 2023 . 5. In January 2023, Grouper changed its method of depreciating plant assets from the straight-line method to the decliningbalance method to present more relevant information. The controller has prepared a schedule that shows what the depreciation expense would have been in previous periods if the declining-balance method had been used. 6. In 2023 , Grouper discovered that in 2022 it had failed to record $30,000 as an expense for sales commissions. The sales commissions for 2022 were included in the 2023 expenses