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$616,050 Below is the Retained Earnings account for the year 2017 for Cooper Corp. Retained earnings, January 1, 2017 Add: Gain on discontinued operations (net
$616,050 Below is the Retained Earnings account for the year 2017 for Cooper Corp. Retained earnings, January 1, 2017 Add: Gain on discontinued operations (net of tax) $12,000 Net income 168,300 Gain on sale of investments (net of tax) 41,200 Cumulative effect on income of prior years in changing from LIFO to FIFO in 2017 (net of tax) 52,600 Recognition of income earned in 2016, but omitted from Income statement in that year (net of tax) 49.700 323.800 939,850 Deduct: Write-off of goodwill (net of tax) Cash dividends declared 200,000 60.000 260.000 679.850 (a) Prepare a corrected retained earnings statement. Cooper Corp. normally sells investments of the type mentioned above. FIFO inventory was used in 2017 to compute net income. (b) State where the items that do not appear in the corrected retained earnings statement should be shown
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