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(Retained Earnings Statement) McEntire Corporation began operations on January 1, 2009. During its first 3 years of operations, McEntire reported net income and declared dividends
(Retained Earnings Statement)
McEntire Corporation began operations on January 1, 2009. During its first 3 years of operations, McEntire reported net income and declared dividends as follows.
Net income | Dividends declared | ||
2009 | $47,900 | $ -0- | |
2010 | 132,700 | 53,200 | |
2011 | 162,700 | 57,500 |
The following information relates to 2012.
Income before income tax | $243,500 | |
Prior period adjustment: understatement of 2010 depreciation expense (before taxes) | $25,200 | |
Cumulative decrease in income from change in inventory methods (before taxes) | $41,800 | |
Dividends declared (of this amount, $25,000 will be paid on Jan. 15, 2013) | $100,000 | |
Effective tax rate | 40% |
(a) | Prepare a 2012 retained earnings statement for McEntire Corporation. (Enter all amounts as positive amounts and subtract where necessary.)
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