27. Retained Earnings Titanic Corporation’s net income for the year ended December 31, 2022, is $380,000. On June 30, 2022, a $0.75 per-share cash dividend was declared for all common shareholders. Outstanding at the time were 38,000 common shares. The market price of Titanic’s shares at year-end (12/31/22) is $18 per share. Titanic had a $1,100,000 credit balance in retained earnings at December 31, 2021. Assume that on July 31, 2022, Titanic discovered that 2021 depreciation was overstated by $75,000. Required: Prepare Titanic's retained earnings statement for the year ended December 31, 2022, assuming the 2021 tax rate was 30%.
27. Retained Earnings Titanic Corporation’s net income for the year ended December 31, 2022, is $380,000. On June 30, 2022, a $0.75 per-share cash dividend was declared for all common shareholders. Outstanding at the time were 38,000 common shares. The market price of Titanic’s shares at year-end (12/31/22) is $18 per share. Titanic had a $1,100,000 credit balance in retained earnings at December 31, 2021. Assume that on July 31, 2022, Titanic discovered that 2021 depreciation was overstated by $75,000. Required: Prepare Titanic's retained earnings statement for the year ended December 31, 2022, assuming the 2021 tax rate was 30%.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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27.
Retained Earnings
Titanic Corporation’s net income for the year ended December 31, 2022, is $380,000. On June 30, 2022, a $0.75 per-share cash dividend was declared for all common shareholders. Outstanding at the time were 38,000 common shares. The market price of Titanic’s shares at year-end (12/31/22) is $18 per share. Titanic had a $1,100,000 credit balance in retained earnings at December 31, 2021.
Assume that on July 31, 2022, Titanic discovered that 2021
Required:
Prepare Titanic's retained earnings statement for the year ended December 31, 2022, assuming the 2021 tax rate was 30%.
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