Based on the below task description, kindly choose the 5 correct statements.

Maher AG reported income before income tax for 2022 of €790,000. The following additional transactions occurred during 2022 but were not included in the €790,000 amount:

1. The company experienced an uninsured flood loss of €90,000 during the year.

2. At the beginning of 2020, the company purchased a machine for €54,000 with a residual value of €9,000 and a useful life of 6 years.

   The bookkeeper used the straight-line depreciation method for 2020, 2021, and 2022 but failed to deduct the residual value when computing the depreciation base.

3. The sale of securities held as part of the company’s investment portfolio resulted in a gain of €47,000.

4. The company disposed of its recreational division at a loss of €115,000 before taxes.

   Assume that this transaction meets the criteria for discontinued operations.

5. The company decided to change its inventory pricing method from the average-cost method to the FIFO method.

   The effect of this change on prior years is as follows (before taxes):

   • 2020 income increases by €60,000

   • 2021 income decreases by €20,000

     The FIFO method has been applied for 2022.

Instructions

Prepare an income statement for the year ended December 31, 2022, beginning with income before income tax.

Compute earnings per share as it should appear on the face of the income statement.

Assume:

• Ordinary shares outstanding during the year: 120,000 shares

• Tax rate: 30% on all items