Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
Blue Corporation began operations on January 1, 2017. During its first 3 years of operations, Blue reported net income and declared dividends as follows: 2017
Blue Corporation began operations on January 1, 2017. During its first 3 years of operations, Blue reported net income and declared dividends as follows: 2017 2018 2019 Net Income $43,800 134,500 162,400 Dividends declared $-0- 51,300 52,500 The following information relates to 2020. Income before income tax Prior period adjustments understatement of 2018 depreciation expense (before taxes) Cumulative decrease in income from change in inventory methods (before taxes) Dividends declared (of this amount. $25,400 will be paid on Jan 15, 2021) Effective tax rate $238,800 $25,400 $43.500 $103,800 20% Prepare a 2020 retained earnings statement for Blue Corporation. (List items that increase adjusted retained earnings first.) BLUE CORPORATION Retained Earnings Statement e Textbook and Media Assume Blue Corporation restricted retained earnings in the amount of $64,540 on December 31, 2020. After this action, what would Blue report as total retained earnings in its December 31, 2020, balance sheet? Total retained earnings $
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/668fde983e9ed_663668fde978764b.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/668fde992e07a_664668fde9882551.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/668fde9a0f9ac_665668fde997438d.jpg)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started