Indigo Corporation began operations on January 1, 2014. During its first 3 years

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Indigo Corporation began operations on January 1, 2014. During its first 3 years of operations, Indigo reported net income and declared dividends as follows: Net income $43,400 131,800 164,000 Dividends declared 2014 2015 2016 $-0 57,500 52,400 The following information relates to 2017. Income before income tax Prior period adjustment: understatement of 2015 depreciation expense (before taxes) Cumulative decrease in income from change in inventory methods (before taxes) Dividends declared (of this amount, $34,700 will be paid on January 15, 2018) Effective tax rate $242,600 $34,700 $36,100 $109,900 40 % Your answer is partially correct. Try again Prepare a 2017 retained earnings statement for Indigo Corporation. (List items that increase adjusted retained earnings first.) INDIGO CORPORATION Retained Earnings Statement For the Year Ended December 31, 2017

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indigo corporation

retained earning, january 1 as reported 229300 correction for depreciation error 20820 cumulative decrease in income from change in inventory methods 21660 retained earnings january 1 as adjusted 186820 add ; net income / ( loss ) 145560 332380 less ; dividend declared 109900 retained earning december 31 222480

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