Trumpet and Trombone Manufacturing, Inc. began the year with a retained earnings balance of $545,000. The company had a great year and earned a net income of $190,000 this year and paid dividends of $14,000. Additionally, the company's controller determined that it had made an error when calculating tax expense in the preceding year, resulting in an understated expense amount of $22,000. What is the ending retained earnings balance?

Principles of Accounting Volume 1
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ISBN:9781947172685
Author:OpenStax
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Chapter14: Corporation Accounting
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Problem 20EB: Trumpet and Trombone Manufacturing, Inc. began the year with a retained earnings balance of...
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Trumpet and Trombone Manufacturing, Inc. began the year with a retained earnings balance of $545,000.
The company had a great year and earned a net income of $190,000 this year and paid dividends of $14,000.
Additionally, the company's controller determined that it had made an error when calculating tax expense in
the preceding year, resulting in an understated expense amount of $22,000. What is the ending retained
earnings balance?
Transcribed Image Text:Trumpet and Trombone Manufacturing, Inc. began the year with a retained earnings balance of $545,000. The company had a great year and earned a net income of $190,000 this year and paid dividends of $14,000. Additionally, the company's controller determined that it had made an error when calculating tax expense in the preceding year, resulting in an understated expense amount of $22,000. What is the ending retained earnings balance?
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