Pullman Corporation had retained earnings of €2,100,000 at January 1, 2019. During the year the company experienced a net loss of €900,000 and declared cash dividends of €240,000. It was discovered in 2019 that €150,000 of repair expense was debited to the Land account in 2018. The income tax rate is 20%. Determine the retained earnings balance at December 31, 2019. a. €810,000 b. €1,080,000 c. €1,050,000 d. €840,000
Pullman Corporation had retained earnings of €2,100,000 at January 1, 2019. During the year the company experienced a net loss of €900,000 and declared cash dividends of €240,000. It was discovered in 2019 that €150,000 of repair expense was debited to the Land account in 2018. The income tax rate is 20%. Determine the retained earnings balance at December 31, 2019. a. €810,000 b. €1,080,000 c. €1,050,000 d. €840,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Pullman Corporation had retained earnings of €2,100,000 at January 1, 2019. During the
year the company experienced a net loss of €900,000 and declared cash dividends of
€240,000. It was discovered in 2019 that €150,000 of repair expense was debited to
the Land account in 2018. The income tax rate is 20%. Determine the retained
earnings balance at December 31, 2019.
a. €810,000
b. €1,080,000
c. €1,050,000
d. €840,000
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