Sunland Corporation began operations on January 1, 2022. During its first 3 years of operations, Sunland reported net income and declared dividends as follows.
Dividends declared
Net income
2022 $41,600
2023 130,000
2024 166,400
$-0-
52,000
52,000
The following information relates to 2025.
Income before income tax $249,600
Prior period adjustment: understatement of 2023 depreciation expense (before taxes) 26,000
Dividends declared (of this amount, $26,000 will be paid on Jan. 15, 2026) 104,000
Effective tax rate 20%