The records of Biloxi Corp. for calendar $2023$ reflected the following correct pre$-$tax amounts: gain from discontinued operations, $$50,000$; cash dividends declared and paid, $$45,000$; retained earnings, January $1,2023,$ $$275,000,$ correction of accounting error, $$35,000$ debit; income before income taxes and before discontinued operations, $$165,000.$ The average income tax rate of $40\%$ applies to all items except the dividends.

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Instructions

Calculate the December $31,2023$ ending balance of retained earnings.

Answer rating: 100% (QA)

To calculate the December 31 2023 ending balance of retained earnings we need to consider the follow... View the full answer