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 |
