Jade Company has a lawsuit filed against it. The board took action to restrict retained earnings in
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Jade Company has a lawsuit filed against it. The board took action to restrict retained earnings in the amount of $2,500,000 on May 31, 20x1, pending the outcome of the suit. On May 31, the company had retained earnings of $3,725,000. Show how the restriction on retained earnings would be disclosed as a note to the financial statements. L01
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