Tuscan Incorporated had a retained earnings balance of $96,000 at December 31 of the prior year. In the current year, Tuscan reported the following results. • Reported net income of $136,000. • Cash dividends of $69,000 declared and paid. • Tuscan discovered this year that it made a math error three years ago; to correct for this, $48,000 (net of tax) must be added to the current year's beginning retained earnings balance. • Revised an estimate of a machine's salvage value. Depreciation Increased by $4,600 per year. Calculate the retained earnings balance at December 31 of the current year. (Amounts to be deducted should be indicated with a minus sign.) Prior period adjustment TUSCAN INCORPORATED Statement of Retained Earnings For Current Year Ended December 31

Tuscan Incorporated had a retained earnings balance of $96,000 at December 31 of the prior year. In the current year, Tuscan reported the following results. • Reported net income of $136,000. • Cash dividends of $69,000 declared and paid. • Tuscan discovered this year that it made a math error three years ago; to correct for this, $48,000 (net of tax) must be added to the current year's beginning retained earnings balance. • Revised an estimate of a machine's salvage value. Depreciation Increased by $4,600 per year. Calculate the retained earnings balance at December 31 of the current year. (Amounts to be deducted should be indicated with a minus sign.) Prior period adjustment TUSCAN INCORPORATED Statement of Retained Earnings For Current Year Ended December 31

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter11: The Corporate Income Tax

Section: Chapter Questions

Problem 5P: Fisafolia Corporation has gross income from operations of $210,000 and operating expenses of...

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