Skyfall Flying Clubs (SFC) retained earnings on January 1, 2013 was $375,000. SFC identified two errors in 2012 reporting as follows: (i) an understatement of cost of goods sold by $40,000, and (ii) an overstatement of advertising expenses by $20,000. In 2013, SFC has the following issues: (a) SFC declared and paid cash dividends of $80,000 to common shares and $40,000 to preferred shares, (b) SFC declared and distributed common stock dividend of $60,000, (c) It paid $30,000 more in its first-time reacquisition of common shares, (d) It had a gain of $20,000 in reacquisition of common stock in second-time repurchase, (e) SFCs other comprehensive income in 2013 was $25,000. SFCs 2013 profit was $180,000 and income tax rate is