Windsor Corporation began operations on January 1, 2022. During its first 3 years of operations, Windsor reported net income and declared dividends as follows. 2022 2023 2024 Net income $37,600 117,500 150,400 Dividends declared $-0- 47,000 47,000 The following information relates to 2025. Income before income tax Prior period adjustment: understatement of 2023 depreciation expense (before taxes) Dividends declared (of this amount, $23,500 will be paid on Jan. 15. 2026) Effective tax rate $225,600 23,500 94,000 20%
Windsor Corporation began operations on January 1, 2022. During its first 3 years of operations, Windsor reported net income and declared dividends as follows. 2022 2023 2024 Net income $37,600 117,500 150,400 Dividends declared $-0- 47,000 47,000 The following information relates to 2025. Income before income tax Prior period adjustment: understatement of 2023 depreciation expense (before taxes) Dividends declared (of this amount, $23,500 will be paid on Jan. 15. 2026) Effective tax rate $225,600 23,500 94,000 20%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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please answer with proper explanation computation formula or leave
Transcribed Image Text:Windsor Corporation began operations on January 1, 2022. During its first 3 years of operations, Windsor reported net income and
declared dividends as follows.
2022
2023
2024
Net income
$37,600
117,500
150,400
Dividends
declared
$-0-
47,000
47,000
The following information relates to 2025.
Income before income tax
Prior period adjustment: understatement of 2023 depreciation expense (before taxes)
Dividends declared (of this amount, $23,500 will be paid on Jan. 15. 2026)
Effective tax rate
$225,600
23,500
94,000
20%
Transcribed Image Text:(b)
Assume Windsor Corporation restricted retained earnings in the amount of $65,800 on December 31, 2025. After this action,
what would Windsor report as total retained earnings in its December 31, 2025, balance sheet?
Total retained earnings $
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