Final answer:
Prior period adjustments and certain other comprehensive income items adjusted for taxes should be reflected net of tax in the opening balance of retained earnings on the statement of stockholders' equity.
Step-by-step explanation:
The question pertains to accounting practices related to the statement of stockholders' equity, which is part of a company's financial statements. Specifically, it asks about items that should be reflected net of applicable income taxes as an adjustment to the opening balance in retained earnings. In general, prior period adjustments, such as corrections of errors in previous financial statements or changes in accounting principles, should be shown net of tax in the statement of stockholders' equity. These adjustments are made to the opening balance of retained earnings to ensure that the financial statements present accurate and consistent information over time. Other comprehensive income items adjusted for taxes may also be reflected in this section if they are recategorized from other comprehensive income to retained earnings.