Simmons Corporation Reports the Following Information: Correction of Understatement of Depreciation

question 37

Multiple Choice

Simmons Corporation reports the following information: Correction of understatement of depreciation expense $\begin{array}{lr}\text { in prior years, net of tax } & 430,000 \\\text { Dividends declared } & 320,000 \\\text { Net income } & 1,000,000 \\\text { Retained earnings, 1/1/07, as reported } & 2,000,000\end{array}$ Simmons should report retained earnings, 12/31/07, as adjusted at

• A)$1,570,000.
• B)$2,250,000.
• C)$2,680,000.
• D)$3,110,000.

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Definitions:

Foreign-Born Noncitizens

Foreign-born noncitizens are individuals born outside of a given country who have not acquired citizenship by naturalization within that country.

Income Inequality

The uneven distribution of income within a population, where some individuals earn significantly more than others.

Social Security Act

A law enacted in 1935 in the United States to provide for the general welfare by establishing a system of federal old-age benefits, and by enabling the states to make more adequate provision for aged persons, blind persons, dependent and crippled children, maternal and child welfare, public health, and the administration of their unemployment compensation laws.

Industrial Accidents

Unplanned events that occur in the industrial sector causing injury to employees or damage to properties.