Income before income tax Prior period adjustment: understatement of 20X2 depreciation expense (before taxes) Cumulative decrease in income from change in inventory methods (before taxes) Dividends declared (of this amount, $31,800 will be paid on Jan. 15, 20X5) Effective tax rate $248,700 $31,800 $35,200 $113,300 Prepare a 20X4 retained earnings statement for Sunland Corporation. 20%

Survey of Accounting (Accounting I)
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Author:Carl Warren
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Chapter2: Basic Accounting Systems: Cash Basis
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Problem 10CDQ: Assume that as of January 1, 20Y8, Sylvester Con- suiting has total assets of $500,000 and total...
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Income before income tax
Prior period adjustment: understatement of 20X2
depreciation expense (before taxes)
Cumulative decrease in income from change in inventory
methods (before taxes)
Dividends declared (of this amount, $31,800 will be paid on
Jan. 15, 20X5)
Effective tax rate
$248,700
$31,800
$35,200
$113,300
Prepare a 20X4 retained earnings statement for Sunland Corporation.
20%
Transcribed Image Text:Income before income tax Prior period adjustment: understatement of 20X2 depreciation expense (before taxes) Cumulative decrease in income from change in inventory methods (before taxes) Dividends declared (of this amount, $31,800 will be paid on Jan. 15, 20X5) Effective tax rate $248,700 $31,800 $35,200 $113,300 Prepare a 20X4 retained earnings statement for Sunland Corporation. 20%
Sunland Corporation began operations on January 1, 20X1. During its first 3 years of
operations, Sunland reported net income and declared dividends as follows:
Dividends
declared
Net
income
20X1 $47,700
$-0-
20X2 134,300
59,800
20X3 161,700
53,500
The following information relates to 20X4.
Transcribed Image Text:Sunland Corporation began operations on January 1, 20X1. During its first 3 years of operations, Sunland reported net income and declared dividends as follows: Dividends declared Net income 20X1 $47,700 $-0- 20X2 134,300 59,800 20X3 161,700 53,500 The following information relates to 20X4.
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