Calculating the Balance in Retained Earnings

The following information is provided for Fey Corp. for the year ended December 31, 2020.

Sales	$110,000
Cost of goods sold	45,000
General and administrative expenses	25,000
Unrealized gain on available-for-sale securities	2,000
Dividends declared and paid	12,000
Prior period adjustment, net of tax (expense understatement)	2,200
Stock dividends distributed	6,000
Treasury stock at cost	4,000
Retained earnings, beginning balance	130,000

Required

Assuming a 25% statutory tax rate, calculate the ending balance in retained earnings for the year ended December 31, 2020.

Retained earnings, Dec. 31, 2020

Answer