If the beginning and ending balances in retained earnings are $15,000 and $10,000, respectively, and dividends during the year are $8,000, then net income for the year is:
A)$10,000.
B)$3,000.
C)$18,000.
D)$32,000.

Question

Quizplus · Accepted Answer

Net income = Beginning retained earnings + Net income - Dividends - Ending retained earnings= $15,000 + Net income - $8,000 - $10,000= $15,000 - $8,000 - $10,000= $3,000

If the Beginning and Ending Balances in Retained Earnings Are