Business, 11.06.2020 01:57 msheehan4737

Stellar Corporation began operations on January 1, 2014. During its first 3 years of operations, Stellar reported net income and declared dividends as follows. Net incomeDividends declared2014 $49,500 $ –0–2015 128,600 59,6002016 161,000 58,800The following information relates to 2017.Income before income tax $231,000Prior period adjustment: understatement of 2015 depreciation expense (before taxes) $32,000Cumulative decrease in income from change in inventory methods (before taxes) $44,800Dividends declared (of this amount, $32,000 will be paid on January 15, 2018) $118,400Effective tax rate 40%Prepare a 2017 retained earnings statement for Stellar Corporation. (List items that increase adjusted retained earnings first.)

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Answer from: amandasantiago2001

$194,820

Explanation:

Retained earnings at the end of 2017 is computed thus:

2014 net income $49,500

2014 dividends ($0)

2014 retained earnings $49,500

2015 net income $128,600

2015 dividends ($59,600)

2015 retained earnings $118,500

2016 net income $161,000

2016 dividends ($58,800)

2016 retained earnings $220,700

understatement of depreciation expense

after tax impact $32,000-(40%*$32,000) ($19,200)

After tax impact of decrease in net income due

to inventory method $44,800-($44,800*40%) ($26,880)

Adjusted retained earnings for 2016 $174,620

net income for 2017 $231,000-($231,000*40%) $138,600

dividends declared for 2017 ($118,400)

Retained earnings for 2017 year end $194,820

Retained earnings in the adjustment in each is the retained earnings brought forward plus the net income for the current year minus dividends declared for the year

Answer from: Quest

answer; specific performance;

Answer from: Quest

anjan should should report alteast 5000 on the first apyment and 10,000 each year

explanation:

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Stellar Corporation began operations on January 1, 2014. During its first 3 years of operations, Ste...

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