Nigiri Inc. began operations on October 1, 2014. During October, Nigiri sold ordinary shares for ¥440,000,000, earned net income of ¥64,000,000, and paid dividends of ¥1,978,000. Retained earnings at the end of October is
A) ¥504,000,000.
B) ¥502,022,000.
C) ¥64,000,000.
D) ¥62,022,000.

Question

Quizplus · Accepted Answer

Retained earnings at the end of October is calculated as net income minus dividends. Thus, ¥64,000,000 (net income) - ¥1,978,000 (dividends) = ¥62,022,000.