Solution for QID #103073: 2 points While preparing its financial statements for 2016, | StudyHelpMe

2 points While preparing its financial statements for 2016, June Company discovered computational errors in its 2015 and 2014 depreciation expense. These errors resulted in overstatement of each year's income by P25,000, net of income taxes. The following amounts were reported in the previously issued financial statements: 2015 2014 Retained earnings, January 1 700,000 500,000 Net income 150.000 200.000 Retained earnings, December 31 850.000 700,000 June's net income for the year 2016 is correctly reported at P500,000 and dividends of P100,000 were de- clared. What is the balance of retained earnings on December 31, 2016? a. 1,200,000 O b. 1,250,000 O c. 1,300,000 O d. 1,225,000