Answer:
it will be credit by 51,500
Explanation:
This will be calcualte with the same procedure as retained earnings:
beginning + income - dividends = ending
We should understand that this is done to determinate if a company is subject to the accumualted earnings tax.
accumualed earnings 135,000
income for the period 60,000
dividends (8,500)
increase: 51,500
net 186,500
This amount is less than the 250,000 exempt so there is not amount subject to accumulated earnings tax.
