The income statement for Delta-tec Inc. for the year ended December 31, 2016, was as follows:
Delta-tec Inc.
Income Statement (selected items)
For the Year Ended December 31, 2016
Income from operations ............................................. $299,700
Gain on sale of investments ......................................... 17,800
Less unrealized loss on trading investments ...................... 72,500
Net income ............................................................. $245,000
The balance sheet dated December 31, 2015, showed a Retained Earnings balance of $825,000. During 2016, the company purchased trading investments for the first time at a cost of $346,000. In addition, trading investments with a cost of $66,000 were sold at a gain during 2016. The company paid $65,000 in dividends during 2016.
a. Determine the December 31, 2016, Retained Earnings balance.
b. Provide the December 31, 2016, balance sheet presentation for Trading Investments.