Answer:
You are right it is D
Explanation:
Having Self Intrest will cause selfishnes while doing political things.
The subsidiary of a U.S. corporation located in Country Y generated income of $1,000,000 on which it paid $400,000 (40%) in taxes to Country Y. The subsidiary paid a dividend to the U.S. parent of $54,000. How much tax is currently owed to the U.S. government if the federal tax rate is 35%
Answer:
The tax currently owed to the U.S. government is:
$18,900
Explanation:
a) Data and Calculations:
Income generated by the foreign subsidiary = $1,000,000
Tax paid by the subsidiary in its country of residence = $400,000
Dividend paid to the U.S. parent = $54,000
Federal tax rate = 35%
Tax on the dividend = $18,900 ($54,000 * 35%)
b) The dividend of $54,000 is a foreign-source income earned by a U.S. parent corporation. This is this amount that will be subject to tax in the U.S. and not the net income of the subsidiary.
If the velocity of money is 3 and the amount of narrow money is $1.56 billion, what would be the nominal GDP?
Select one:
a. $8.5 trillion
b. $4.68 billion
c. $4.68 trillion
d. $5.68 billion
= 4.68 billion
Answer:
c. $4.68 trillion
Explanation:
Narrow money refers to the physical money coins and notes within an economy. It is a way of measuring the money that is available for immediate spending in the economy.
The velocity of money is the rate at which money circulates in the economy. Therefore, the velocity of money is a measure of the number of times narrow money circulates in the economy per period.
If the velocity of money is 3, narrow money circulates three times, meaning the value of GDP will be the velocity of money multiplied by narrow money
=3 x 1.56 billion
=4.68 billion
Bettner, Inc., is a calendar year corporation whose financial statements for 2015 and 2016 included errors as follows:
Year Ending Inventory Depreciation Expense
2015 $ 12,000 overstated $ 22,300 overstated
2016 8,000 understated 6,000 understated
Assume that inventory purchases were recorded correctly and that no correcting entries were made at December 31, 2015, or December 31, 2016. The errors were discovered in 2017, after the 2016 financial statements were issued.
Required:
Ignoring income taxes, prepare the journal entry Bettner would make in 2017 to correct the errors.
Answer:
i. For the Understatement of Inventory - Rectification
Journal Entry Debit Credit
Inventory A/c $8,000
To Profit and loss adjustment a/c $8,000
ii. To Rectify overstatement of Depreciation Expense
Journal Entry Debit Credit
Profit and loss adjustment A/c $16,300
To Depreciation Expense $16,300
(22,300 - 6,000)
The town of Franklin has an economy composed entirely of two equally sized specialized tire manufacturers. Both company X and company Z produce race car tires and airplane tires. Company X is better at producing race car tires than Company Z which is better at producing airplane tires. In order to maximize output, Company X should:_________
a. reduce its production of race car tires in order to commit resources to learn how to better produce airplane tires.
b. abandon the production of airplane tires to fully specialize in the production of race car tires and then trade with Company Z for airplane tires.
c. keep producing both products at the going rate.
d. produce both race car tires and airplane tires on its own and sell its excess race car tires to Company Z for additional airplane tires.
Answer:
b. abandon the production of airplane tires to fully specialize in the production of race car tires and then trade with Company Z for airplane tires.
Explanation:
Company X has a comparative advantage at producing race car tires
Company Z has a comparative advantage at producing airplane tires.
A country (company) has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries (companies).
A company should specialise only in the production of the good for which it has a comparative advantage.
Company X should specialise in producing race car tires and stop producing airplane tires
Company Z should specialise in producing airplane tires and stop producing race car tires
Answer:
B. abandon the production of airplane tires to fully specialize in the production of race car tires and then trade with Company Z for airplane tires.
Explanation:
Determine the number of cycles per day and the production quantity per cycle for this set of vehicles:
Product /Daily Quantity
A, 20
B ,12
C, 4
D, 16
Determin the number of cycles.
Answer:
the number of cycles is 4
Explanation:
The computation of the number of cycles are presented below;
Product Daily Quantity Daily unit per cycle
A 20 20 ÷ 4= 5
B 12 12 ÷ 4= 3
C 4 4 ÷ 4= 1
D 16 16 ÷ 4= 4
hence, the number of cycles is 4
QUESTION 10 of 10: Your business owns an old truck. Liability insurance is required; collision is optional. Collision insurance costs $500 per year. The old truck has a value of $750. You think the likelihood of having a serious collision in a year is about 10%. Should you get the collision insurance? O a) Yes Ob) No
the answer for this question is No
hope this helps
Answer:
no
Explanation:
I had this one.
You are the executive vice president for Cooper Tire, the sixth largest U.S. tire maker. You have the responsibility to locate land for a new distribution center in Mississippi, and you own over 1,000 acres of land near one site in Tupelo. This could create for you:________.
A) a code of ethics.
B) the usual decision-making problems of cost versus benefit to Cooper Tire.
C) a wonderful, ethical opportunity to make a lot of money.
D) an ethical opportunity to move the distribution center to your hometown.
E) a conflict of interest.
Answer:
This could create for you:________.
E) a conflict of interest.
Explanation:
The conflict of interest will occur when, as the executive vice president for Cooper Tire, you decide to buy the land for your company from your own acres of land. It means that your personal interests (or family, friendships, financial, or other social factors) are being served, perhaps at the detriment of your employer's. In this situation, it is likely that you could compromise your judgment, decisions, or actions in the workplace by going ahead to acquire this land for your company because you want to serve your personal and community interests. However, you can avoid the conflict by clearly stating your positions to your company and allow other management staff to make the needed decision with regards to your land.
____involves relying on one's
authority position or stressing that a
request is in accordance with
organizational policies or rules.
Select one:
a. Consultation
b. Legitimacy
c. Exchange
d. Rational persuasion
= Legitimacy
Explanation:
legitimacy involves relying on one's
authority position or stressing that a
request is in accordance with
organizational policies or rules.
Some students and scholars may owe money with their tax return. Nonresidents have which of the following payment options?
a. Ask for an extension of time to pay or an installment agreement.
b. Pay the entire balance by the due date for the return.
c. Put the balance on a credit card.
d. All of the above.
Answer:
d. All of the above.
Explanation:
In the case where certain students and academics owes their tax return money, the non-resident has the below payment options.
a. Either apply for a pay time extension or an agreement to pay on the basis of payments
b. Pay at the due date of the return the total sum
c. On the credit card, put the balance
Therefore by all of the above options they can be eligible
hence, the correct option is d.
Assume that Nevermore, Inc., a U.S.-based subsidiary wants to raise $US 1 million by issuing a bond denominated in Pakistani rupees (PKR). The current exchange rate of the rupee is $.02
How many PKR does the MNC need to obtain the $US 1 million needed?
Answer: 50,000,000 Pakistani rupees (PKR)
Explanation:
The company wants to raise enough money in Pakistani rupees to match a million American dollars.
The rate is a Rupee to $0.02.
A million dollars will be:
= 1,000,000/0.02
= 50,000,000 Pakistani rupees (PKR)
Suppose that the California legislature passes a law that severely restricts carbon dioxide emissions from automobiles in that
state. A group of automobile manufacturers files suit against the state of California to prevent the enforcement of the law. The
essentially the same as carbon dioxide emission standards. According to the automobile manufacturers, it is unfair to allow
ralifornia to impose more stringent regulation
automakers claim that a federal law already sets fuel economy standards nationwide and that fuel economy standards are
s than those set by the federal law. Using the information presented in the chapter,
answer the following questions. Are the plaintiffs seeking a legal remedy or an equitable remedy?
Answer:
The plaintiffs are seeking an equitable remedy.
Explanation:
Legal remedies basically involve monetary compensations, in other words, the non-breaching party (in this case case manufacturers) sue in order to receive money.
While equitable remedies do not involve monetary compensations, instead they seek other types of solutions.
How is poverty anywhere a threat to prosperity everywhere?
Answer: Here poverty can be explained as a barrier to growth.
Explanation:
Although we indeed live today in a globalized world, where there are greater opportunities for more people, poverty continues to be a problem that can be a barrier to the growth of wealth.
Poverty interferes with the growth of the human being since it limits it and does not allow it to develop its potential, which leads it to remain at the same level where it was and contributes to the growth of poverty.
When poverty is higher, prosperity is lower. Inequalities in many aspects are becoming more marked and although it is true there seem to be greater opportunities, many times those people who come from poverty face difficulties to get out of there, which makes it a kind of circle.
In the case of an expansionary_____policy, the interest rate rises, while in the case of an expansionary _____ policy, the interest rate falls.
Select one:
a. fiscal; monetary
b. monetary, monetary
c. monetary, fiscal
d. fiscal; fiscal
= fiscal; monetary
With an expansionary fiscal policy, the interest rate rises, while with an expansionary monetary policy, the interest rate falls.
What is an Expansionary fiscal & monetary policy?This is when an increases in money supply is stimulated by raising spending or cut taxes while the latter is when the cost of borrowing i reduced to stimulate an economy.
Therefore, the Option A is correct.
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what do Librarians need to do after they have jobs?
a. attend conferences where they train other librarians
b. volunteer in schools to advise students about how to use libraries
c. slowly share their knowledge with librarians in other locations
d. continually train to stay up to date on information technology developments
The action that a Librarians need to do after they have jobs is to continually train to stay up to date on information technology developments.
Who is a librarian?In a education sector, the "librarian" is an officer who is responsible for overseeing the daily operations of their library, either at the public or private level. They also work within a schools, religious institutions, in government libraries and research facilities.
Some of the typical roles and responsibilities of a librarian includes:
They provide a customer service for library usersThey provide suggestions to library users about new booksThey help the library users to check out booksThey oversee the team of assistant librarians and library aidsThey also help to develop fun and education programs for youths and adultsIn conclusion, the action that a Librarians need to do after they have jobs is to continually train to stay up to date on information technology developments. Therefore, the Option D is correct.
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Answer:
D.
Explanation:
Edge 2023
ReNew Corporation raises funds to build renewable energy systems by issuing 3-year bonds with a coupon rate of 5% and a face value of $1,800. Assume that the market interest rate for a 3-year bond issued by a firm like ReNew is currently the same as the coupon rate. The price of each of these bonds is , which means that the bonds sell at .
Answer:
$1,800
Explanation:
The price of the bond today is the present value of future cash flows, which are the coupon payments and the face value receivable by bondholders at redemption in 3 years.
When a bond has the same coupon rate as the yield, the bond would sell at par which is the $1,800 par value.
This is further affirmed using the formula below:
bond price=face value/(1+r)^n+annual coupon*(1-(1+r)^-n/r
face value=$1,800
r=yield=5%
n=number of annual coupons in 3 years=3
annual coupon=face value*coupon rate=$1800*5%=$90
bond price=$1800/(1+5%)^3+$90*(1-(1+5%)^-3/5%
bond price=$1800/1.05^3+$90*(1-(1.05)^-3/0.05
bond price=$1800/1.157625+$90*(1-0.863838)/0.05
bond price=$1800/1.157625+$90*0.136162/0.05
bond price=$ 1,554.91 +$ 245.09
bond price=$ 1,800.00
13.) An investor is in a 30% combined federal plus state tax bracket. If corporate bonds offer 6% yields, what yield must municipals offer for the investor to prefer them to corporate bonds
Answer:
the yield that must offer for the investor in order to prefer them is 4.2%
Explanation:
The computation is shown below:
The after tax yield is
= Corporate bond yield × (1 - tax rate)
= 6% × (1 - 0.30)
= 6% × 0.70
= 4.2%
hence, the yield that must offer for the investor in order to prefer them is 4.2%
The same is relevant
A new machine comes with 200 free service hours over the first year. Additional time costs $180 per hour. What are the average and marginal costs per hour for the following quantities?
a) 125.
b) 225.
c) 325.
Answer:
a) 0, 0
b) 180 per hour, 20per hour
c) 180 per hour , 69.2 per hour
Explanation:
We are to calculate the average and marginal costs per hour of the given value above
a) Given Number of hours is 125, but we are told that the new machine comes with 200 free service hours over the first year. Then MARGINAL COST= 0 because the service can be equal to 200hours and the given 125 hours is less than that.
then AVERAGE COST = ZERO
(b) we are Given 225 number of hours
Additional time costs is given as $180 per hour.
Then we have $180 per hour as MARGINAL COST.
Total cost can be calculated as
= [$180 × (225 - 200)]
=[ $180 ×25] = $4,500
Average cost can be calculated as
ratio of Total cost to Number of hours i.e $4,500/225
= 20per hour
C)we are Given 325 number of hours
Additional time costs is given as $180 per hour.
Then we have $180 per hour as MARGINAL COST.
Total cost can be calculated as
= [$180 × (235 - 200)]
=[ $180 ×125] = $22,500
Average cost can be calculated as
ratio of Total cost to Number of hours i.e $22,500/325
= 69.2per hour
Perceptual skills can be enhanced
by
Select one:
a. Knowing and perceiving on
self accurately
b. Being empathetic
c. Both are incorrect
d. Both are correct
= Both are correct
Answer:
D
Explanation:
A and B both effect Perceptual skills so it would be D
Cash flows is the most relevant variable to measure the returns on debt instruments, while GAAP net income is the most relevant variable to measure the returns on common stock.
a) true
b) false
Answer:
b) false
Explanation:
Cash flow determines the cash position of the company whether the company is able to pay the obligations or not. It could be determined by analyzing the inflows of cash and outflows of cash
While on the other hand GAAP is the accounting principle that is compuslory for each and every organization to follow it
Therefore the given statement is false
Case studies can _________ be cross-representational from company to company.
rarely
always
never
usually
Bakers are much _________ likely to supply pastries to the market if property rights are not enforced. In the presence of market failures, public policy can improve economic efficiency.
Classify the source of market failure in each case listed.
a. A manufacturing plant dumps chemical waste into a nearby river, poisoning the water supply for a small town downstream.
b. There is only one car dealership in a small town, giving the dealership the ability to influence the price of cars.
Answer and Explanation:
In the case when the property rights are not enforced so here the bakers are less likely to supply the pastries
Now the classification of the market failure is as follows;
a. When the manufacturing firm dump the chemical water in near by river so it would be classified as an externality
b. And, when there is only one car dealership so this represent the market power
In Year 1, in a project to develop Product X, Lincoln Company incurred research and development costs totaling $10 million. Lincoln is able to clearly distinguish the research phase from the development phase of the project. Research-phase costs are $6 million, and development-phase costs are $4 million. All of the IAS 38 criteria have been met for recognition of the development costs as an asset. Product X was brought to market in Year 2 and is expected to be marketable for 5 years. Total sales of Product X are estimated at more than $100 million.
Required:
a. Determine the impact research and development costs have on Lincoln Company's Year 1 and Year 2 income under (1) IFRS and (2) U.S. GAAP.
b. Summarize the difference in income, total assets, and total stockholders' equity related to Product X over its five-year life under the two different sets of accounting rules.
Answer:
Answer is explained in the explanation section below.
Explanation:
Data Given:
Research and Development Cost = $10 million
Research Phase Cost = $6 million
Development Cost = $4 million
Total Sales of Product X are estimated at more than = $100 million
Solution:
a.
1. IFRS:
Research cost of $6 million have been expensed in year 1 in case of IFRS.
Whereas, for year 2 developmental cost is reported as assets and amortization is recorded on the asset which is the 5th part of the developmental cost of $4 million.
$4,000,000/5 = $800,000
2. U.S. GAAP:
Under U.S. GAAP in year 1, total of $10 million have been expensed including both research and development cost.
Under U.S. GAAP in year 2, however, there is no asset reported and all the costs are expensed in year 1 hence, no impact on the income statement.
b.
Income: In year 1 under IFRS, income will be higher by $4 million ($10-$6)million before the implication of tax.
But for year 2 to year 5:
In case of IFRS, income will be lowered due to the amortization on the deferred development cost. It will decrease by $800,000.
The total assets and stock holder's equity under IFRS will be higher by the following amounts each of the years.
Year 1 $4,000,000
Year 2 $3,200,000
Year 3 $2,400,000
Year 4 $1,600,000
Year 5 $800,000
The above amount is decreased by $800,000 each year because of the amortization of asset.
Which of the following scenarios are either not accounted for or measured inaccurately by either the income or the expenditure methods of calculating GDP for the United States?
a. The costs of over-fishing and other overly intensive uses of resources
b. The quality of goods available to consumers
c. Federal government paychecks to soldiers
d. The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government
e. All the above
Answer:
E
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Items not included in the calculation off GDP includes:
1. services not rendered to oneself
2. Activities not reported to the government
3. illegal activities
4. sale or purchase of used products
5. sale or purchase of intermediate products
6. Externalities
When Sarafina deposits money in an IDA, _____.
it earns the highest interest rates available at a bank
it is good for the government
an organization matches the amount she deposited
the interest on the account is not taxed
Answer:
an organization matches the amount she deposited
Explanation:
An individual development account ( IDA) is a special program account that assists low-income groups and other marginalized groups achieve financial stability. An IDA helps these individuals save for education, purchase a home or start a business.
With an IDA, the contributions individuals make are matched by the state or other donor projects. The matching initiative serves as an encouragement to the target group to save and attain financial stability.
Marginal Cost of Producing Pies
$1,60
$1.40
$1.20
Marginal Cost
$1.00
$0.80
$0.60
SO 40
S020
S0.00
O Pies
1 Pies
5 Pies
6 Pies
2 Pies 3 Pies 4 Pies
Quantity Supplied
According to the graph, the marginal cost begins to increase when the producer makes
O two pies
O three pies
O four pies
O five pies
Save and Exit
Next
Mark this and return
Su
Answer:
O four pies
Explanation:
Marginal cost is the expenses associated with the production of an extra item. It the cost attached specifically to the production of one more unit.
From the graph, the marginal rise sharply from 0 units to 1 rapidly. Usually, the marginal cost of the 1st unit is equal to its cost price. The second item's marginal cost is the difference between the cost price of the second item and the first item.
From the graph, the marginal cost starts to rise after the fourth item. The marginal cost of the fourth item is the difference between the fourth and third item.
Answer: C) FOUR PIES
Self-Study Problem 10-1 Master Budget
Hansell Company’s management wants to prepare budgets for one of its products, Duraflex, for July 2019. The firm sells the product for $91 per unit and has the following expected sales (in units) for these months in 2019:
April May June July August September
3,900 6,500 6,600 8,200 9,200 5,800
The production process requires 4 pounds of Dura-1000 and 2 pounds of Flexplas. The firm’s policy is to maintain an ending inventory each month equal to 10% of the following month’s budgeted sales, but in no case less than 500 units. All materials inventories are to be maintained at 5% of the production needs for the next month, but not to exceed 1,000 pounds. The firm expects all inventories at the end of June to be within the guidelines. The purchases department expects the materials to cost $1.25 per pound and $5.00 per pound for Dura-1000 and Flexplas, respectively.
The production process requires direct labor at two skill levels. The rate for labor at the K102 level is $50 per hour and $20 per hour for the K175 level. The K102 level can process one batch of duraflex per hour; each batch consists of 100 units. The manufacturing of Duraflex also requires one-tenth of an hour of K175 workers’ time for each unit manufactured.
Required:
On the basis of the preceding data and projections, prepare the following budgets:
a. Sales budget for July (in dollars).
b. Production budget for July (in units).
c. Production budget for August (in units).
d. Direct materials purchases budget for July (in pounds).
e. Direct materials purchases budget for July (in dollars).
f. Direct manufacturing labor budget for July (in dollars).
Answer:
a.-Sales Budget (in dollars).
Budgeted sales in units 6,000
Budgeted selling price per unit $40
Budgeted sales $240,000
b. Production Budget (in units)
Desired ending inventory (July 31)
(The higher of 100 and 7,000 x 0,1) 700
Budgeted sales for July 2002 + 6,000
Total units needed for July 2002 6700
Beginning inventory (July 1) -
(The higher of 100 and 6,000 x 0,1) 600
Units to manufacture in July 6100
C.-Production Budget (in units)
for August 2002
Desired ending inventory (8,000 x 0,1) 800
Budgeted sales + 7,000
Total units needed 7800
Beginning inventory - 700
Units to manufacture in August 7100
d.-Direct Materials Purchases Budget (in pounds)
For July 2002
Direct Materials
Dura-tOOO Flexplas
(4Ib. each) (2Ib. each)
d Materials required for budgeted
production (6,100 units of duraflex) 24,400 12,200
Add: Target inventories (lower of 1,000 or 5 percent of
August production needs) 1,420 710 1000 710
Total materials requirements 25,400 12,910
Less: Expected beginning inventories (lower of 1,000 orr 5 percent) . 1,220 610 1000 610
Direct materials to be purchased 24,400 12,300
e.Direct Materials Purchases Budget (in dollars) For July 2002
Budgeted Expected
Purchases Purchase
(Pounds) Price per Unit Total
Dura-lOOO 24,400 $1.25 $30,500
Flexplas 12,300 $5.00 $61,500
Budgeted purchases $92,000
Explanation:
The firm's policy is to maintain a minimum of 100 units of duraflex on hand at alltimes with no fewer than 10 percent of units on hand at the end of a period to meet
the expected sales for the following month. 100 10%
All materials inventories are to be maintained at 5 ercent of the production needs for the next month, 5% but not to exceed 1000 pounds 1000
The firm expects all inventories at the end of June to be within the Guidelines.
The purchase department expects the materials to cost $1.25 per pound $1.25 and $5.00 per pound of dura-lOOO and flexplas, respectively. $5.00
The production process requires direct labor at two skill levels. rate per unit The rate for labor at the K102 level is $50 per hour and $50.00 $0.50 for the K175 level is $20 per hour. $20.00
The K102 level can process one batch of duraflex per hour; 1 each batch consists of 100 units. 100 No. of units in one hour rate per unit
The manufacturing of duraflex also requires one-tenth of an hour of K175 workers' time 0.10 10.0 $2.00 for each unit manufactured.
Manufactured overhead is allocated at the rate of $200 per batch and $30 per $200.00 per batch DIirect labor-hour. $30.00 per direct labor-hour.
Suppose your own demand curve for sweaters slopes downward. Suppose also that, for the last sweater you bought this week, you paid a price exactly equal to your willingness to pay. Then
Use letters in alphabetical order to select options
A your consumer surplus on the last sweater you bought is zero.
B you already have bought too many sweaters this week.
C your consumer surplus on all of the sweaters you have bought this week is zero.
D you should buy more sweaters before the end of the week.
Answer:
A
Explanation:
Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.
Consumer surplus = willingness to pay – price of the good
If willingness to pay = price of the good , then consumer surplus is zero
Smashed Pumpkins Co. paid $160 in dividends and $589 in interest over the past year. The company increased retained earnings by $492 and had accounts payable of $630. Sales for the year were $16,370 and depreciation was $732. The tax rate was 40 percent. What was the company's EBIT
Answer: $1675.67
Explanation:
Based on the information given in the question, the company's EBIT would be calculated as:
Earnings After Tax will be:
= Retained Earnings + Dividends
= 492 + 160
= 652
Earnings Before Tax will be:
= EAT / (1 - tax rate)
= 652 / (1 - 40%)
= 652 / (1 - 0.40)
= 652/0.60
= 1086.67
EBIT would then be calculated as:
= EBT + Interest
= 1086.67 + 589
= 1675.67
which business is more likely to borrow from an investment bank
Answer:
Investment banks were seeking to borrow more money to trade more debt and earn more profits. Early on, for every one dollar the investment bank invested from its own funds, it invested an additional three dollars of borrowed funds.
The revenues and expenses of Paradise Travel Service for the year ended May 31, 2018, follow: Accounts Fees earned $809,500 Office expense 295,200 Miscellaneous expense 10,600 Wages expense 450,900 Everett McCauley invested an additional $37,600 in the business in exchange for common stock, and $15,600 of dividends were paid during the year. Retained earnings as of June 1, 2017, was $340,000.
Required:
Prepare a retained earnings statement for the year ended May 31, 2018.
Answer:
$377,200
Explanation:
Preparation for a retained earnings statement for the year ended May 31, 2018
First step is to calculate the Net income
Net income During The Year
Accounts Fees earned $809,500
Less Office expense 295,200
Miscellaneous expense 10,600
Wages expense 450,900
Net Income $52,800
Second step is to calculate the Change In Retained Earnings
Dividends $15,600
Net Income $52,800
Change In Retained Earnings $37,200
($52,800-$15,600)
Now let calculate retained earnings statement
Beginning retained earnings $340,000
Add Change In Retained Earnings $37,200
($52,800-$15,600)
Retained Earning May 31, 2018 $ $377,200
($340,000+$37,200)
Therefore the retained earnings statement for the year ended May 31, 2018 is $377,200