The Following Data Are Available for 2001: Correction of Prior

Essay

The following data are available for 2001: Correction of prior years' error, (a debit, pre-tax and subject to income tax), $22,000; Net income (after tax), $50,000; Dividends, declared $11,000; and Income tax rate, 40 percent. Prepare a retained earnings statement for the year ended December 31, 2001. The balance January 1, 2001, as previously reported is $108,000