(Answered) Problem - below is the retained earnings account for the

Accounting

Problem - Below is the Retained Earnings account for the year 2012 for Acadian Corp.

Retained earnings, January 1, 2012		$261,302
Add:
Gain on sale of investments (net of tax)	$44,902
Net income	88,202
Refund on litigation with government, related to the year 2009
(net of tax)	25,302
Recognition of income earned in 2011, but omitted from income
statement in that year (net of tax)	29,102	187,508
		448,810
Deduct:
Loss on discontinued operations (net of tax)	38,702
Write-off of goodwill (net of tax)	63,702
Cumulative effect on income of prior years in changing from
LIFO to FIFO inventory valuation in 2012 (net of tax)	26,902
Cash dividends declared	35,702	165,008
Retained earnings, December 31, 2012		$283,802

Prepare a corrected retained earnings statement. Acadian Corp. normally sells investments of the type mentioned above. FIFO inventory was used in 2012 to compute net income.

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