What should be the balance of retained earnings at december

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Reference no: EM132672409

The following information was extracted from the accounts of Tomato Corporation at December 31, 2020:

                                                                                            CR (DR)

Total reported income since incorporation......................................... $1,540,000

Total cash dividends paid since incorporation.................................... (550,000)

Cumulative effect of changes in accounting principle (net of tax)........ (154,000)

Total stock dividends distributed........................................................ (330,000)

Correction of an error from prior year (net of tax)................................ 84,700

Problem 1: What should be the balance of retained earnings at December 31, 2020?

Option 1: $465,300

Option 2: $590,700

Option 3: $550,000

Option 4: $506,000

Reference no: EM132672409

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