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The Income Statement for Hudson Company Reported Net Income of $345,000

question 73

Essay

The income statement for Hudson Company reported net income of $345,000 for the year ended December 31 before considering the following:

During the year, the company purchased trading securities.
At year-end, the fair value of the investment portfolio was $23,000 less than cost.
The balance of Retained Earnings was $823,000 on January 1.
Hudson Company paid $43,000 in cash dividends during the year.Calculate the balance of Retained Earnings on December 31.


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An examination or inspection to ensure something is in order or to assess someone's health.

Cognitive Dissonance Theory

A psychological theory suggesting that we experience discomfort or distress from holding two conflicting beliefs, behaviors, or attitudes, leading to a change in one to reduce the dissonance.

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Rewarding

Providing satisfaction, pleasure, or a positive outcome that reinforces behavior or effort.

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