C Co. reported a retained earnings balance of $270,000 at December 31, 2012. In September 2013, C determined that insurance premiums of $75,000 for the three-year period beginning January 1, 2012, had been paid and fully expensed in 2012. C has a 40% income tax rate. What amount should C report as adjusted beginning retained earnings in its 2013 statement of retained earnings?

A) $300,000

B) $315,000

C) $295,000

D) $320,000

Answer rating: 100% (QA)

Option A 300000 is the correct answer Since 40 is the tax rate deducted 270000 ... View the full answer