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

question 93

Essay

The income statement for Hudson Company reported net income of $345,000 for the year ended December 31 before considering the following:
$\bullet$ During the year the company purchased trading securities.
$\bullet$ At year end, the fair value of the investment portfolio was $23,000 less than cost.
$\bullet$ The balance of Retained Earnings was $823,000 on January 1.
$\bullet$ Hudson Company paid $43,000 in cash dividends during the year.
Calculate the balance of Retained Earnings on December 31.

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Definitions:

Word Association

is a psychological method where individuals spontaneously say or write the first word that comes to mind in response to a given word.

Neuroses

A term often used historically to describe a range of psychological disorders characterized by anxiety, depression, or other feelings of distress but not by delusions or hallucinations.

Anxiety-dominated Disturbances

Psychological disorders primarily characterized by excessive fear, worry, and anxiety.

Unconscious

The part of the mind that is inaccessible to the conscious mind but that affects behavior and emotions.