Gardiner, Inc. reported a retained earnings balance of $190,000 at December 31, 2018. In June 2019,

Gardiner discovered that merchandise costing $50,000 had not been included as ending inventory in its

2018 financial statements. Also, a $20,000 accrued expense was omitted on 12/31/18. Gardiner has a 20%

tax rate. Assuming the correcting journal entry net of tax was recorded, what amount should Gardiner

report as adjusted beginning retained earnings in its 2019 statement of retained earnings?

Select one:

a. $230,000

b. $240,000

c. $166,000

d. $246,000

e. $214,000