On January 1,2019,Miller Corporation had retained earnings of $8,000,000.During 2019,Miller reported net income of $1,500,000,declared dividends of $500,000,and issued common stock for $1,000,000.What were Miller's retained earnings on December 31,2019?

Question

Quizplus · Accepted Answer

Retained earnings on December 31, 2019 would be calculated as:
Retained Earnings = Beginning Retained Earnings + Net Income - Dividends Declared
Retained Earnings = $8,000,000 + $1,500,000 - $500,000
Retained Earnings = $9,000,000. Therefore, the correct answer is option C.

On January 1,2019,Miller Corporation Had Retained Earnings of $8,000,000