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can you solve it with proper calculation On January 1, 2021, Ivanhoe Corporation had retained earnings of $700,000. During the year, Ivanhoe had the following
can you solve it with proper calculation
On January 1, 2021, Ivanhoe Corporation had retained earnings of $700,000. During the year, Ivanhoe had the following selected transactions: 1. Declared and paid cash dividends, $276,000. 2. Earned profit before income tax, $790,000. 3. Corrected a prior period error of $87,000, before income tax, which resulted in an understatement of profit in 2020. 4. Reacquired 21,000 common shares for $55,000 more than the original issue price. This was the first time the company had ever reacquired its own shares. 5. Completed a 3-for-1 stock split of the common shares. Ivanhoe has a 25% income tax rate and reports under ASPE. Prepare a statement of retained earnings for the year ended December 31, 2021. (List Items that increase retained earnings first.) IVANHOE CORPORATION Statement of Retained Earnings $ $ $Step by Step Solution
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