Refer to the information for Titanic Corporation above. Assume that on July 31, 2011, Titanic discovered that 2010 depreciation was overstated by $75,000.
Titanic Corporation’s net income for the year ended December 31, 2011, is $380,000. On June 30, 2011, a $0.75 per share cash dividend was declared for all common stockholders.
Common stock in the amount of 38,000 shares was outstanding at the time. The market price of Titanic’s stock at year-end (12/31/11) is $18 per share. Titanic had a $1,100,000 credit balance in retained earnings at December 31, 2010.
Provide Titanic’s retained earnings statement for the year ended December 31, 2011, assuming the 2010 tax rate was 30 percent.