Garys TV had the following accounts and amounts in its financial statements on December 31, 2016. Assume that all balance sheet items reflect account balances at December 31, 2016, and that all income statement items reflect activities that occurred during the year then ended.

Interest expense	$	27,000
Paid-in capital		85,000
Accumulated depreciation		27,000
Notes payable (long-term)		288,000
Rent expense		67,000
Merchandise inventory		838,000
Accounts receivable		185,000
Depreciation expense		11,000
Land		126,000
Retained earnings		416,600
Cash		141,000
Cost of goods sold		1,760,000
Equipment		67,000
Income tax expense		246,600
Accounts payable		102,000
Sales revenue		2,550,000

a. Calculate the earnings from operations (operating income) for the year ended December 31, 2016.

b. Calculate the net income (or loss) for the year ended December 31, 2016.

c. What was the average income tax rate for Garys TV for 2016?

d. If $429,400 of dividends had been declared and paid during the year, what was the January 1, 2016, balance of retained earnings?