Blossom Corporation began operations on January 1, 2022. During its first 3 years of operations, Blossom reported net income and declared dividends as follows. 2022 2023 2024 Net income Dividends declared $-0- $49,600 155,000 198,400 62,000 62,000 The following information relates to 2025. Income before income tax Prior period adjustment: understatement of 2023 depreciation expense (before taxes) Dividends declared (of this amount, $31,000 will be paid on Jan. 15, 2026) Effective tax rate $297,600 31,000 124,000 20%

Blossom Corporation began operations on January 1,2022. During its first 3 years of operations, Elossom reported net incoine and declared dividends as follows. Blossom Corporation began operations on January 1,2022. During its first 3 years of operations, Elossom reported net incoine and declared dividends as follows