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The effective corporate tax rate is 30 percent. The company had 10.000 shares at common stock outstanding for the entire year.
(1) Prepare a multiple-step income statement in good form for the year ended December 31. 2014,
(2) Prepare a retained earnings statement in good form for the year ended December 31, 2014.
Cash payments Lo Suppliers . . . . . . „ .......
Beginning Inventory . • .
Ending A/P ..................................................
Ending Tnventory ..................................
Historical Cost of disposed equipment ..................
Accumulated Depreci.ation on disposed Equipment ........
312,04c.
'40=
6,400
46.000
56,000
49.0=
Proceeds trem sale of equipment ......................
0,C00
Prior period adjustment .................................
(16.000)
Gain en disposal of business component.. ...... . ...
30,400
Retained earnings, january 1, 2014 ...................
1,6.00,C40
Dividends declared .........................................
12.000
Which of the following is true regarding the lower of cost or market principle?
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