Simmons Corporation reports the following information:
Correction of understatement of depreciation expense $\begin{array}{lr}
\text { in prior years, net of tax } & 430,000 \
\text { Dividends declared } & 320,000 \
\text { Net income } & 1,000,000 \
\text { Retained earnings, 1/1/07, as reported } & 2,000,000
\end{array}$ Simmons should report retained earnings, 1/1/07, as adjusted at
A)$1,570,000.
B)$2,000,000.
C)$2,430,000.
D)$3,110,000.

Question

Simmons Corporation reports the following information: 
Correction of understatement of depreciation expense $\begin{array}{lr}
\text { in prior years, net of tax } & 430,000 \
\text { Dividends declared } & 320,000 \
\text { Net income } & 1,000,000 \
\text { Retained earnings, 1/1/07, as reported } & 2,000,000
\end{array}$ Simmons should report retained earnings, 1/1/07, as adjusted at
A)$1,570,000.
B)$2,000,000.
C)$2,430,000.
D)$3,110,000.

Quizplus · Accepted Answer

The Answer of Simmons Corporation reports the following information: 
Correction of understatement of depreciation expense $\begin{array}{lr}
\text { in prior years, net of tax } & 430,000 \
\text { Dividends declared } & 320,000 \
\text { Net income } & 1,000,000 \
\text { Retained earnings, 1/1/07, as reported } & 2,000,000
\end{array}$ Simmons should report retained earnings, 1/1/07, as adjusted at
A)$1,570,000.
B)$2,000,000.
C)$2,430,000.
D)$3,110,000.

Simmons Corporation Reports the Following Information: Correction of Understatement

Simmons Corporation Reports the Following Information:
Correction of Understatement