Presented below is information which relates to Labrador Limited for 2014:
Collections of credit sales $1,100,000
Retained earnings, January 1, 2014 800,000
Sales 1,900,000
Selling and administrative expenses 290,000
Casualty loss (pre-tax) 350,000
Cash dividends declared on common stock 34,000
Cost of goods sold 1,100,000
Loss resulting from calculation error on depreciation charge in 2012 (pre-tax) 460,000
Other revenues 180,000
Other expenses 120,000
Loss from early extinguishment of debt (pre-tax) 340,000
Gain from transactions in foreign currencies (pre-tax) 220,000
Proceeds from sale of Strathroy common shares 60,000
Additional information:
1. Early in 2014, Labrador changed depreciation methods for its plant assets from the double declining-balance to the straight-line method. The affected assets were purchased at the beginning of 2012 for $200,000, had no residual value, and had useful lives of 10 years. Depreciation expense of $20,000 is included in the "Selling and Administrative Expenses" of $290,000.