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Unformatted text preview: statement. __________________________ Reporting Special Income Items Plush Textiles had a beginning balance in its retained earnings account of $580,000 on January 1, 2008. Income from Continuing Operations (before-tax) was $225,000 for 2008. The companys tax rate is 30% for all years presented. Following is a list of special items that have not been considered in the amounts above. All amounts are before taxes: Extraordinary gain $31,000 Correction of a 2007 revenue understatement $50,000 Loss from operations of a discontinued textiles division $22,000 Gain on sale of the textiles division $60,000 Omission of depreciation charges from January and February 2008 $10,000 Prepare a partial income statement for 2008 starting with Income From Continuing Operations before tax. What is the 12/31/08 balance in the Retained Earnings account? _______________________...
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- Spring '10