Answer :

Thompson report at December 31,2016= $ 440,000

Working Notes for the above answer is as under

We have been provided with the information that

Thompson Instruments had retained earnings of $340,000 at December 31, 2015.

Net income for 2016 totaled $185,000,

dividends for 2016 were $85,000.

So we calculate the Thompson report at December 31,2016 as follow

Opeaning Retained earning 31 dec,2015
340,000

Add:
 

Net income for 2016
185,000

Less:
 

dividends for 2016
-85000

Retained Earning at the year End,Dec-2016
440,000

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