The Income Statement for Dodson Corporation Reported Net Income of $22,400

question 127

Essay

The income statement for Dodson Corporation reported net income of $22,400 for the year ended December 31 before considering the following:
During the year the company purchased available-for-sale securities.
At year end, the fair value of the investment portfolio was $2,100 more than cost. The balance of Retained Earnings was $83,000 on January 1.
Dobson Corporation paid $9,000 in cash dividends during the year.
Calculate the balance of Retained Earnings on December 31.

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Definitions:

Industry Supply

The total quantity of a product or service that is available for purchase in a specific industry at a given price and time.

Transport Cost

Expenses associated with the movement of goods or people from one location to another.

Land Rent

Payment made for the use of land, typically in agriculture, business, or as part of real estate transactions.

Marginal Costs

The added expense resulting from making one more unit of a product or service.