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Blossom Corporation began operations on January 1, 2017. During its first 3 years of operations, Blossom reported net income and declared dividends as follows: Net
Blossom Corporation began operations on January 1, 2017. During its first 3 years of operations, Blossom reported net income and declared dividends as follows:
Net income | Dividends declared | |||||
2017 | $43,300 | $ 0 | ||||
2018 | 127,900 | 52,400 | ||||
2019 | 165,300 | 51,100 |
The following information relates to 2020.
Income before income tax | $227,400 | ||
Prior period adjustment: understatement of 2018 depreciation expense (before taxes) | $25,900 | ||
Cumulative decrease in income from change in inventory methods (before taxes) | $41,100 | ||
Dividends declared (of this amount, $25,900 will be paid on Jan. 15, 2021) | $103,500 | ||
Effective tax rate | 20 | % |
Assume Blossom Corporation restricted retained earnings in the amount of $75,090 on December 31, 2020. After this action, what would Blossom report as total retained earnings in its December 31, 2020, balance sheet?
Total retained earnings | $ |
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