14.
Kaiser Company provided the following data for the current
year:
Retained earnings-unappropriated, January 1 2,000,000
Overdepreciation of prior year net of tax 400,000
Net income for current year 4,000,000
Retained earnings appropriated for treasury shares
(original balance is P500,000 reduced by
P200,000 by reason of reissuance) 300,000
Retained earnings appropriated for contingencies
(beginning balance, P700,000 increased
by current appropriation of P100,000) 800,000
Cash dividends paid to shareholders 1,000,000
Change in accounting policy from FIFO to weighted
average method - debit adjustment net of tax 300,000
What amount should be reported as unappropriated
retained earnings on December 31?
a. 6,000,000
b. 5,200,000
c. 5,100,000
d. 4,800,000
