Below is the Retained Earnings account for the year 2017 for Concord Corp.
Retained earnings, January 1, 2017 $258,100
Add:
Gain on sale of investments (net of tax) $41,700
Net income 85,000
Refund on litigation with government, related to the year 2014 (net of tax) 22,100
Recognition of income earned in 2016, but omitted from income
statement in that year (net of tax) 25,900 174,700
432,800
Deduct:
Loss on discontinued operations (net of tax) 35,500
Write-off of goodwill (net of tax) 60,500
Cumulative effect on income of prior years in changing from
LIFO to FIFO inventory valuation in 2017 (net of tax) 23,700
Cash dividends declared 32,500 152,200
Retained earnings, December 31, 2017
$280,600
(a) Prepare a corrected retained earnings statement. Concord Corp. normally sells investments of the type mentioned above. FIFO inventory was used in 2017 to compute net income. (List items that increase adjusted retained earnings first.)