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lee corporation - Review the following information oLee...

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Net income 2004 $40,000 $0 2005 125,000 50,000 2006 160,000 50,000 $240,000 $25,000 $35,000 $100,000 40% Lee Corporation Retained Earnings Statement Balance, January 1, as reported $225,000* Correction for depreciation error (net of $10,000 tax) -15,000 Cumulative decrease in income from change in inventory methods -21,000 (net of $14,000 tax) Balance, January 1, as adjusted 189,000 Add: Net income 144,000** 333,000 Less: Dividends declared 100,000 Balance, December 31 $233,000 *($40,000 + $125,000 + $160,000) – ($50,000 + $50,000) **[$240,000 – (40% X $240,000)] Common stock $500 Treasury stock -200 Additional paid-in principle $1,000 Shares outstanding 375,940 Shares authorized 500,000 Shares in treasury 30,000 Prepare the statement of changes in owner’s equity. Include required note disclosures for the owner’s equity section. Show a schedule of adjusted amounts using the exchange rates below. 12/31/04=.830979 0.830979 12/31/05=.857927 0.857927 12/31/06=.858222 0.858222 12/31/07=1.01204 1.01204 Review the following information: o Lee Corporation, a U.S. company, began operations on January 1, 2004. o During its first 3 years of operations, Lee reported net income and declared dividends as follows: Dividends declared o The following information relates to 2007:
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