ANSWERS TO QUESTIONS

Bakersfield Incorporated Statement of Retained Earnings For the Year Ending December 31, 2010 Beginning Retained earnings as of January 1, 2010 200,000 Adjustment for change in inventory method ($125,000 × .6) Beginning Retained earnings restated 125,000 Add: Net Income 622,800 Less: Dividends Ending Retained earnings 737,800 ................
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