Keystone Corporation issued its financial statements for the year ended December 31, 2022, on March 10, 2023. The following events took place before the statements were authorized for issue early in 2023. 

a. On January 10, 10,000 ordinary shares of $5 par value were issued at $66 per share.

b. On March 1, Keystone determined after negotiations with the taxing authorities that income taxes payable for 2022 should be $1,320,000. At December 31, 2022, income taxes payable were recorded at $1,100,000.

Instructions

Discuss how the preceding subsequent events should be reflected in the 2022 financial statements.