the records of a corporation for year 3 reflected the following correct pre-tax amounts: cash dividends declared and paid $16,000, retained earnigs january 1 year 3 $120,000. correction of accounting error $10,000 debit income before taxes and before extraordinary item 60,000 the average income tax rate of 40 percent applies to all items except the dividends. The December 31 year ending balance of retained earning wa?