You have been assigned to examine the financial statements of Picard Corporation for the year ended.

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You have been assigned to examine the financial statements of Picard Corporation for the year ended December 31, 2017, as prepared following IFRS. Picard uses a periodic inventory system. You discover the following situations: 1. The physical inventory count on December 31, 2016 improperly excluded merchandise costing $34,000 that had been temporarily stored in a public warehouse. 2. The physical inventory count on December 31, 2017 improperly included merchandise with a cost of $17,400 that had been recorded as a sale on December 27, 2017, and was being held for the customer to pick up on January 4, 2018. 3. A collection of $6,200 on account from a customer received on December 31, 2017 was not recorded in 2017. 4. Depreciation of $7,600 for 2017 on delivery trucks was not recorded. 5. In 2017, the company received $2,700 on a sale of fully depreciated equipment that originally cost $32,000. The company credited the proceeds from the sale to the Equipment account. 6. During November 2017, a competitor company filed a patent infringement suit against Picard, claiming damages of $550,000. The company s legal counsel has indicated that an unfavourable verdict is probable and a reasonable estimate of the court s award to the competitor is $400,000. The company has not reflected or disclosed this situation in the financial statements. 7. A large piece of equipment was purchased on January 3, 2017 for $64,000 and was charged in error to Repairs and Maintenance Expens

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