Cullumber Company reports the following information:

Correction of overstatement of depreciation expense
in prior years, net of tax	$ 647000
Dividends declared	478000
Net income	1516000
Retained earnings, 1/1/20, as reported	6190000

Cullumber should report retained earnings, 12/31/20, at

$ 7228000.

$ 7875000.

$ 5543000.

Cullumber Company had a 40 percent tax rate. Given the following pre-tax amounts, what would be the income tax expense reported on the face of the income statement?

Sales revenue	$ 1100000
Cost of goods sold	617000
Salaries and wages expense	80400
Depreciation expense	119000
Dividend revenue	89500
Utilities expense	10600
Discontinued operations loss	99100
Interest expense	19200

$97680

$61880

$137320