The records of Groot Corp. for calendar 2018 reflected the following correct pre-tax amounts:
• gain from discontinued operations, $50,000;
• cash dividends declared and paid, $45,000;
• retained earnings, January 1, 2018, $275,000,
• correction of accounting error, $35,000 debit;
• income before income taxes and before discontinued operations, $165,000.
The average income tax rate of 40 % applies to all items except the dividends.
What is the December 31, 2018 ending balance of retained earnings?
Ending Balance of... View the full answer