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Problem 4-06 a Below is the Retained Earnings account for the year 2020 for Vaughn Corp. $258,540 Retained earnings, January 1, 2020 Add: Gain on sale of investments (net of tax) Net income Refund on litigation with government, related to the year 2017 (net of tax) Recognition of income earned in 2019, but omitted from income statement in that year (net of tax) $42,140 85,440 22,540 26,340 176,460 435,000 35,940 60,940 Deduct: Loss on discontinued operations (net of tax) Write-off of goodwill (net of tax) Cumulative effect on income of prior years in changing from LIFO to FIFO inventory valuation in 2020 (net of tax) Cash dividends declared Retained earnings, December 31, 2020 24,140 32,940 153,960 $281,040 (a) Prepare a corrected retained earnings statement. Vaughn Corp. normally sells investments of the type mentioned above. FIFO inventory was used in 2020 to compute net income. (List items that increase adjusted retained earnings first.) (a) Prepare a corrected retained earnings statement. Vaughn Corp. normally sells investments of the type mentioned above. FIFO inventory was used in 2020 to compute net income. (List items that increase adjusted retained earnings first.) VAUGHN CORP. Retained Earnings Statement Click if y ould lHko to Shou Alork for this actionnon Show More

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