Swifty Corporation began operations on January 1, 2022. During its first 3 years of operations, Swifty reported net income and declared dividends as follows. 2022 2023 2024 Net income Dividends declared $33,600 105,000 134,400 $-0- 42,000 Effective tax rate 42,000 The following information relates to 2025. Income before income tax Prior period adjustment: understatement of 2023 depreciation expense (before taxes) Dividends declared (of this amount, $21,000 will be paid on Jan. 15, 2026) $201,600 21,000 84,000 20%

Swifty Corporation began operations on Jancary 1, 2022. During its first 3 years of operations. Swifty reported net income and dectared dividends as follows