Cunningham Company reports a retained earnings balance of $365,200 at the beginning of 2013. For the year ended December 31, 2013, the company reports pretax income from continuing operations of $150,500. The following information is also available pertaining to 2013:
- The company declared and paid a $0.72 cash dividend per share on the 30,000 shares of common stock that were outstanding the entire year.
- The company incurred a pretax $21,000 loss as a result of an earthquake, which is unusual and infrequent for the area.
- The company sold Division P (a component of the company) in May. From January through May, Division P had incurred a pretax loss from operations of $33,000. A pretax gain of $15,000 was recognized on the sale of Division P.
Required:
Assuming that all the “pretax” items are subject to a 30% income tax rate:
