Dove Corporation, a calendar year C corporation, had the following information for 2014: Net income per books

Question:

Dove Corporation, a calendar year C corporation, had the following information for 2014:

Net income per books (after-tax)........... $386,250

Taxable income.................. 120,000

Federal income tax per books............. 30,050

Cash dividend distributions............. 150,000

Unappropriated retained earnings as of January 1, 2014... 796,010

Based on the above information, use Schedule M–2 of Form 1120 (see Example 50 in the text) to determine Dove's unappropriated retained earnings balance as of December 31, 2014.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...