The Records of a Corporation for Year 3 Reflected the Following

question 52

Essay

The records of a corporation for year 3 reflected the following correct pre-tax amounts: cash dividends declared and paid, $16,000; retained earnings, January 1, year 3, $120,000, correction of accounting error, $10,000 debit; income before income taxes and before extraordinary item, $60,000. The average income tax rate of 40 percent applies to all items except the dividends.
The December 31, year 3 (ending) balance of retained earnings was $________________.

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Definitions:

Aromatic Molecules

Organic compounds characterized by the presence of one or more benzene rings.

AntiAromatic

Compounds that are cyclic, conjugated, but do not follow Huckel's rule, resulting in instability and lack of aromatic character.

NonAromatic

A compound that does not contain a cyclic, planar ring with a delocalized π-electron system typical of aromatic compounds.

π Network

The conjugated system of pi bonds found in molecules where alternating single and double bonds allow for delocalization of electrons across the structure.