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Vaughn Corporation began operations on January 1, 2014. During its first 3 years of operations, Vaughn reported net income and declared dividends as follows Net
Vaughn Corporation began operations on January 1, 2014. During its first 3 years of operations, Vaughn reported net income and declared dividends as follows Net income Dividends declared $46,700 -0 2014 2015 134,000 55,100 59,300 162,200 2016 The following information relates to 2017. Income before income tax $248,500 Prior period adjustment: understatement of 2015 depreciation expense (before taxes) $29,000 Cumulative decrease in income from change in inventory methods (before taxes) $40,900 Dividends declared (of this amount, $29,000 will be paid on January 15, 2018) $114,400 Effective tax rate 40 Prepare a 2017 retained earnings statement for Vaughn Corporation. (List items that increase adjusted retained earnings first.) VAUGHN CORPORATION Retained Earnings Statement
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