Retained Earnings

Titanic Corporation's net income for the year is $$450,000.$ On June $30,$ a $$0\mathrm{.}50$ per$-$share cash dividend was declared for all common stockholders. Common stock in the

amount of $39,000$ shares was outstanding at the time. The market price of Titanic's stock at year end is $$19$ per share. Titanic had a $$1,200,000$ credit balance in retained

earnings at the beginning of the year.

Assume that in July $31,$ Titanic discovered that prior year's depreciation was overstated by $$70,000.$

Required:

Prepare Titanic's retained earnings statement, assuming the prior year tax rate was $21\%.$

Titanic Corporation

Retained Earnings Statement

For the year ending December $31,20$X$1$