The following information is available for Oriole Corporation: Retained earnings, December 31, 2023 Profit for the...

 

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The following information is available for Oriole Corporation: Retained earnings, December 31, 2023 Profit for the year ended December 31, 2024 The company accountant, in preparing financial statements for the year ended December 31, 2024, has discovered the following information: $1,544,000 263,000 The company's previous bookkeeper had recorded an excess of depreciation expense on a machine in 2022 and 2023 by using the double diminishing-balance method of depreciation. The bookkeeper neglected to use the straight-line method of depreciation, which is the company's policy. The cumulative effect of the error on prior years was $10,200. Depreciation was calculated by the straight- line method in 2024. Oriole's average tax rate is 22%. During 2024, Oriole declared and paid cash dividends of $86,800. Calculate the impact on retained earnings. Retained earnings $ Prepare the statement of retained earnings for 2024. (List items that increase retorneu eurings The following information is available for Oriole Corporation: Retained earnings, December 31, 2023 Profit for the year ended December 31, 2024 The company accountant, in preparing financial statements for the year ended December 31, 2024, has discovered the following information: $1,544,000 263,000 The company's previous bookkeeper had recorded an excess of depreciation expense on a machine in 2022 and 2023 by using the double diminishing-balance method of depreciation. The bookkeeper neglected to use the straight-line method of depreciation, which is the company's policy. The cumulative effect of the error on prior years was $10,200. Depreciation was calculated by the straight- line method in 2024. Oriole's average tax rate is 22%. During 2024, Oriole declared and paid cash dividends of $86,800. Calculate the impact on retained earnings. Retained earnings $ Prepare the statement of retained earnings for 2024. (List items that increase retorneu eurings

Answer rating: 100% (QA)

To calculate the impact on retained earnings we need to consider the following factors a Correcting ... View the full answer