Mobile Power Corp.reported the following information for the year ended December 31, 2015. What was the retained earnings balance for Mobile Power at December 31, 2014?
A)$ 165,000
B)$ 168,000
C)$ 182,000
D)$ 192,000

Question

Mobile Power Corp.reported the following information for the year ended December 31, 2015.  What was the retained earnings balance for Mobile Power at December 31, 2014?
A)$ 165,000 
B)$ 168,000 
C)$ 182,000 
D)$ 192,000

Quizplus · Accepted Answer

The retained earnings balance for 2014 can be calculated by subtracting the net loss ($14,000) and dividends paid ($2,000) from the ending balance of retained earnings for 2015 ($152,000). Therefore, the retained earnings balance for Mobile Power at December 31, 2014 was $168,000 (152,000 + 14,000 - 2,000).