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The Bellcamp Soup Company uses the straight-line depreciation for financial reporting purposes and accelerated depreciation for tax purposes. The companys tax rate is 35%. The

  • The Bellcamp Soup Company uses the straight-line depreciation for financial reporting purposes and accelerated depreciation for tax purposes. The companys tax rate is 35%. The following information is extracted from the companys financial statements (amounts in $ millions).

Year 10

Year 11

Depreciation Expense

175.9

184.1

Net Income

4.4

401.5

Net Plant, Property and Equipment

1,717.7

1,790.4

Total Assets

4,115.6

4,149.0

Retained Earnings

1,653.3

1,912.6

Deferred Tax Liability--Plant (from Notes)

184.6

175.6

As an analyst, you have decided to adjust the companys financial statements to reflect the conversion from straight-line to accelerated depreciation. Use the information provided to calculate the adjusted values for Year 11 of the following:

a.

Net Plant, Property and Equipment.

b.

Retained Earnings.

c.

Net Income.

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