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

question 20

Essay

The income statement for Hudson Company reported net income of $345,000 for the year ended December 31, 2012 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 December 31, 2011. Hudson Company paid $43,000 in cash dividends in 2012. Calculate the balance of retained earnings on December 31, 2012.

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Definitions:

Beta Rhythm

A pattern of brain wave activity with a frequency of 13-30 Hz that is associated with active, alert, or concentrating mental states.

Eyes Open

A condition or state in which the eyelids are retracted, allowing light to enter the eye and vision to occur.

Cycles Per Second

A unit of frequency equivalent to one hertz, indicating the number of cycles (such as wave oscillations) completed in one second.

Gustatory Cortex

Area of the brain involved in the perception of taste.