Testbank Multiple Choice Question 80 Wildhorse Co. reports the following information: Correction of understatement of depreciation...
Testbank Multiple Choice Question 80
Wildhorse Co. reports the following information:
| Correction of understatement of depreciation expense | |
| in prior years, net of tax | $ 1299000 |
| Dividends declared | 951000 |
| Net income | 3150000 |
| Retained earnings, 1/1/20, as reported | 5960000 |
Wildhorse should report retained earnings, 1/1/20, as adjusted
at
|
a. |
$7259000. |
|
b. |
$4661000. |
|
c. |
$5960000. |
|
d. |
$9458000. |
Homework Answers
If depreciation understated, net income will be overstated. so we have to reduced understated amount from retained earnings.
| Retained earnings, 1/1/20, as reported | $ 5,960,000 |
| Less: Correction of understatement of depreciation expense in prior years, net of tax | $ (1,299,000) |
| retained earnings, 1/1/20 | $ 4,661,000 |
Answer will be B. $4,661,000
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Testbank Multiple Choice Question 80
Wildhorse Co. reports the following information:
Correction of understatement of
depreciation...
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1-Sandhill Co. reports the following information:
Correction of understatement of
depreciation expense
in prior years,
net of tax
$ 1288000
Dividends declared
963000
Net income
2970000
Retained earnings, 1/1/20, as
reported
6170000
Sandhill should report retained earnings, 1/1/20, as adjusted
at
$7458000.
$6170000.
$9465000.
$4882000.
2-Ivanhoe Company had a 40 percent tax rate. Given the following
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Dooman Corporation reports the following information: Correction of understatement of depreciation expense in prior years, net of tax $ 645 Dividends declared 480 Net Income 1,500 Retained earnings, 1/1/17, as reported 3,000 Dooman should report retained earning, 12/31/17, at Select one: a. $4,020 O b. $3,375. C. $4,665 d. $2,355
D. Long-term Liabilities QUESTION 40 Adele Inc. reports the following information: Correction of understatement of depreciation...
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1-Cullumber Company reported the following information for 2020: Sales revenue $2055000 Cost of goods sold 1407000...
1-Cullumber Company reported the following information for
2020:
Sales revenue
$2055000
Cost of goods sold
1407000
Operating expenses
230000
Unrealized holding gain on
available-for-sale securities
121600
Cash dividends received on the
securities
8400
For 2020, Cullumber would report other comprehensive income
of
$418000.
$130000.
$121600.
$426400.
2-Wildhorse Co. reports the following information:
Correction of overstatement of
depreciation expense
in prior years,
net of tax
$ 643000
Dividends declared
482000
Net income
1504000
Retained earnings, 1/1/20, as
reported
5830000
Wildhorse should...
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Blue Lake Corporation reports the following information: Correction of understatement of expense in 2016, net of tax $ 645,000 Dividends declared in 2019 480,000 Net income for 2019 1,500,000 Retained earnings, 1/1/2019, unadjusted 3,000,000 Blue Lake should report ending retained earnings as of 12/31/2019, at $3,375,000 $4,665,000 $2,355,000. $4,020,000
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Wildhorse Corporation began operations on January 1, 2017. During its first 3 years of operations, Wildhorse...
Wildhorse Corporation began operations on January 1, 2017. During its first 3 years of operations, Wildhorse reported net income and declared dividends as follows: Net income Dividends declared 2017 $43,300 $ –0– 2018 126,900 58,000 2019 161,500 55,800 The following information relates to 2020. Income before income tax $230,700 Prior period adjustment: understatement of 2018 depreciation expense (before taxes) $26,700 Cumulative decrease in income from change in inventory methods (before taxes) $45,000 Dividends declared (of this amount, $26,700 will be...
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16. Benedict Corporation reports the following information: $750,000 $210,000 $ 90,000 250,000 Net income Dividends on...
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1-Sandhill Co. reports the following information:
Correction of understatement of
depreciation expense
in prior years,
net of tax
$ 1288000
Dividends declared
963000
Net income
2970000
Retained earnings, 1/1/20, as
reported
6170000
Sandhill should report retained earnings, 1/1/20, as adjusted
at
$7458000.
$6170000.
$9465000.
$4882000.
2-Ivanhoe Company had a 40 percent tax rate. Given the following
pre-tax amounts, what would be the income tax expense reported on
the face of the income statement?
Sales revenue
$ 1070000
Cost of goods...
Dooman Corporation reports the following information: Correction of understatement of depreciation expense in prior years, net of tax $ 645 Dividends declared 480 Net Income 1,500 Retained earnings, 1/1/17, as reported 3,000 Dooman should report retained earning, 12/31/17, at Select one: a. $4,020 O b. $3,375. C. $4,665 d. $2,355
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1-Cullumber Company reported the following information for
2020:
Sales revenue
$2055000
Cost of goods sold
1407000
Operating expenses
230000
Unrealized holding gain on
available-for-sale securities
121600
Cash dividends received on the
securities
8400
For 2020, Cullumber would report other comprehensive income
of
$418000.
$130000.
$121600.
$426400.
2-Wildhorse Co. reports the following information:
Correction of overstatement of
depreciation expense
in prior years,
net of tax
$ 643000
Dividends declared
482000
Net income
1504000
Retained earnings, 1/1/20, as
reported
5830000
Wildhorse should...
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