The records of Biloxi Corp. for calendar 2023 reflected the following correct pre- tax amounts: gain from discontinued operations, $50,000; cash dividends declared and paid, $45,000; retained earnings, January 1, 2023, $275,000, correction of accounting error, $ 35,000 debit; income before income taxes and before discontinued operations, $165,000. The average income tax rate of 40% applies to all items except the dividends. Instructions Calculate the December 31, 2023 ending balance of retained earnings.

The records of Biloxi Corp. for calendar 2023 reflected the following correct pre- tax amounts: gain from discontinued operations, $50,000; cash dividends declared and paid, $45,000; retained earnings, January 1, 2023, $275,000, correction of accounting error, $ 35,000 debit; income before income taxes and before discontinued operations, $165,000. The average income tax rate of 40% applies to all items except the dividends. Instructions Calculate the December 31, 2023 ending balance of retained earnings.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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