Cheyenne Corporation began operations on January 1, 2014. During its first 3 years of operations, Cheyenne reported net income and declared dividends as follows.

Net income Dividends declared

2014 $40,000 $ 0

2015 126,200 55,400

2016 160,400 58,700

The following information relates to 2017.

Income before income tax		$246,500
Prior period adjustment: understatement of 2015 depreciation expense (before taxes)		$29,400
Cumulative decrease in income from change in inventory methods (before taxes)		$39,600
Dividends declared (of this amount, $29,400 will be paid on January 15, 2018)		$114,100
Effective tax rate		40	%