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1 What is the Net Income for 2021? 2 What is the Adjusted Retained Earnings on 1/1/20? PARTA (Retained Earnings Statement) January 1, Retained Earnings
1 What is the Net Income for 2021? 2 What is the Adjusted Retained Earnings on 1/1/20? PARTA (Retained Earnings Statement) January 1, Retained Earnings Beginning Balance $2,340,000 2021 Income before income tax 960,000 Prior period adjustment: understatement of 2020 depreciation expense (before taxes) 100,000 Cumulative decrease in income from change in inventory methods (before taxes) 140,000 Dividends declared 400,000 Due to a change in the estimated life of the equipment, depreciation expense was 30% higher for 2021 Effective tax rate 20% 3 Assume the Board of Directors restricted retained earnings in the amount of $280,000 on December 31, 2020. What amount of RE is reported in the 3.1 Are there any additional reporting requirement for the restriction? What is required? COMPLETE THE FOLLOWING Statement of Retained Earnings
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