In the Current Year, Jacksonville Company Has Discovered a Material

Multiple Choice

In the current year, Jacksonville Company has discovered a material prior-period error in its calculation of income. The company had incorrectly debited an asset costing $120,000 to an expense account. The related income tax expense was $42,000. If beginning Retained Earnings in the current period is $3,703,000, net income is $1,011,000 and dividends declared are $267,000, ending Retained Earnings equals:

A) $4,525,000.
B) $5,059,000.
C) $4,369,000.
D) $4,609,000.
E) $4,447,000.