Tuscan Inc. had a retained earnings balance of $66,000 at December 31, 2018. During the year, Tuscan had the following selected transactions.
• Reported net income of $106,000.
• Revised an estimate of a machine's salvage value. Depreciation increased by $1,600 per year.
• An error was discovered. Three years ago, a purchase of a building was incorrectly expensed. The effect is understated retained earnings of $18,000 (net of tax benefit).
• Paid cash dividends of $39,000.
Calculate the retained earnings balance at December 31, 2019. (Amounts to be deducted should be indicated with a minus sign.)
TUSCAN INC.
Statement of Retained Earnings
For Year Ended December 31, 2019
Prior period adjustment