Question
Gardiner, Inc. reported a retained earnings balance of $190,000 at December 31, 2024.In June 2025, Gardiner discovered that merchandise costing $20,000 had been improperly included
Gardiner, Inc. reported a retained earnings balance of $190,000 at December 31, 2024.In June 2025, Gardiner discovered that merchandise costing $20,000 had been improperly included in ending inventory in its 2024 financial statements.Also, a $50,000 accrued expense was omitted on 12/31/24.Gardiner has a 20% tax rate.Assuming the correcting journal entry net of tax was recorded, what amount should Gardiner report as adjustedbeginningretained earnings in its 2025 statement of retained earnings?
Select one:
a.$226,000
b.$120,000
c.$166,000
d.$160,000
e.$134,000
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