Retained Earnings}

Refer to the information for Titanic Corporation above. Assume that on July 31, 2018, Titanic discovered that 2017 depreciation was overstated by \(\$ 75,000\).

\section*{Required:}

Prepare Titanic's retained earnings statement for the year ended December 31, 2018, assuming the 2017 tax rate was \(30 \%\).

Titanic Corporation's net income for the year ended December 31, 2018, is \(\$ 380,000\). On June 30,2018 , a \(\$ 0.75\) per-share cash dividend was declared for all common shareholders. Common shares in the amount of 38,000 common shares were outstanding at the time. The market price of Titanic's shares at year-end (12/31/18) is \(\$ 18\) per share. Titanic had a \(\$ 1,100,000\) credit balance in retained earnings at December 31, 2017 .

\section*{OBJECTIVE 5 Brief Exercise