The income statement for Delta-tec Inc. for the year ended December 31, Year 2, was as follows:
Income from operations $299,700
Gain on sale of investments 17,800
Unrealized loss on trading investments (72,500)
Net income $245,000
The balance sheet dated December 31, Year 1, showed a Retained Earnings balance of $825,000. During Year 2, the company purchased trading investments for the first time at a cost of $346,000. In addition, trading investments with a cost of $66,000 were sold at a gain during Year 2. The company paid $65,000 in dividends during Year 2.
a. Determine the December 31, Year 2, Retained Earnings balance.
b. Provide the December 31, Year 2, balance sheet disclosure for Trading Investments
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