Mountain Company has beginning retained earnings of $450,000, earns a net income of $75,000, and pays dividends of $9,000 during the period.
The balance in Mountain's ending retained earnings is:
A) $516,000
B) $366,000
C) $534,000
D) $525,000

Question

Quizplus · Accepted Answer

Ending retained earnings = Beginning retained earnings + Net income (loss) - Dividends
X = $450,000 + $75,000 - $9,000
X = $516,000

Mountain Company Has Beginning Retained Earnings of $450,000, Earns a Net