At the beginning of 2007, the retained earnings of the Camerson Co. was $212,000. For 2007, the company has calculated its pretax income from continuing operations to be $120,000. Druing 2007, the following events also occurred:
1. During July the company sold Divsion M. It has determined that the pretax income from the operaions of division M during 2007 totals $39,000 and that a pretax loss of $40,500 was incurred on the sale of Division M.
2. The company had 21,000 shares of common stock outstanding during all of 2007. It declared and paid a $1 per share cash dividend on this stock.
3. The company experienced an extraordinary event. It recognized a material pretax gain of $26,000 on the event.
4. The company found and corrected a pretax $18,000 understatement of the 2006 ending inventory because of a mathematical error.
2007-10-23
17:32:19
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1 answers
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Other - Business & Finance