Current Attempt in Progress Waterway Corporation, a private company, began operations on January 1, 2020. During its first three years of operations, Waterway reported net income and declared dividends as follows: 2020 2021 202 Net income $56,000 138,000 162,000 Dividends declared $0 Income before income tax 50,000 50,000 The following information is for 2023: Correction of prior period error: understatement of 2021 depreciation expense (before tax) Cumulative increase in prior years' income from change in inventory method (before tax) Dividends declared (of this amount, $25,000 will be paid on January 15, 2024) Effective tax rate $320,000 41,000 51,000 100,000 40%

Waterway Corporation, a private company, began operations on January 1.2020. During its first three years of operations, Waterway reported net income and declared dividends as follows: Waterway Corporation Statement of Retained Earnings $ eTextbook and Meda Somifortater Attempts: 0 of 3 used