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Business, 10.03.2020 19:16 haileyrae187

Jethroe Co. reported a retained earnings balance of $200,000 at December 1, year 4. In June year 5, Jethroe discovered that merchandise costing $50,000 had not been included in inventory in its year 4 financial statements. Jethroe has a 21% tax rate.

What amount should Jethroe report as adjusted beginning retained earnings in its statement of retained earnings at December 31, year 5?

A. $150,000
B. $189,500
C. $200,000
D. $239,500

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