Question - Sarasota Corporation began operations on January 1, 2014. During its first 3 years of operations, Sarasota reported net income and declared dividends as follows.
Net income Dividends declared
2014 $43,300$ -0-
2015 127,900 52,400
2016 165,300 51,100
The following information relates to 2017.
Income before income tax $227,400
Prior period adjustment: understatement of 2015 depreciation expense (before taxes) $25,900
Cumulative decrease in income from change in inventory methods (before taxes) $41,100
Dividends declared (of this amount, $25,900 will be paid on January 15, 2018) $103,500
Effective tax rate 40%
What is the 2017 retained earnings statement for Sarasota Corporation?