On January 1, 2015, Flaggler Company's balance in retained earnings was $70,000. During 2015, the company earned net income of $43,000 and paid $15,000 in dividends. Calculate the retained earnings balance at December 31, 2015.
A)$42,000
B)$90,000
C)$98,000
D)$113,00

Question

Quizplus · Accepted Answer

The retained earnings balance at December 31, 2015, is calculated as the beginning balance plus net income minus dividends: $70,000 + $43,000 - $15,000 = $98,000.

On January 1, 2015, Flaggler Company's Balance in Retained Earnings