Bailout Corporation
Bailout Corporation reported the following information for the year ended December 31, 2012.
$\begin{array}{ll}
\text { Reverues } & \$ 2,500,000 \
\text { Expenses } & 2,000,000 \
\text { Retained earnings at December } 31,2011 & 100,000 \
\text { Retained earnings at December } 31,2012 & 450,000
\end{array}$
-Refer to the selected information provided for Bailout Corporation. How much was paid out in dividends in 2012?

Question

Bailout Corporation 
Bailout Corporation reported the following information for the year ended December 31, 2012.
$\begin{array}{ll}
\text { Reverues } & \$ 2,500,000 \
\text { Expenses } & 2,000,000 \
\text { Retained earnings at December } 31,2011 & 100,000 \
\text { Retained earnings at December } 31,2012 & 450,000
\end{array}$ 
-Refer to the selected information provided for Bailout Corporation. How much was paid out in dividends in 2012?

Quizplus · Accepted Answer

The net income for 2012 is $500,000 ($2,500,000 revenues - $2,000,000 expenses). The change in retained earnings is $350,000 ($450,000 - $100,000). Therefore, dividends paid = net income - change in retained earnings = $500,000 - $350,000 = $150,000.

Bailout Corporation Bailout Corporation Reported the Following Information for the Year

Bailout Corporation
Bailout Corporation Reported the Following Information for the Year