On December 31,2013,the balance in retained earnings is $20,000.On December 31,2014,the balance in retained earnings is $19,100.During 2014,dividends of $4,000 were declared and paid.What is the amount of net income for 2014?

Question

Quizplus · Accepted Answer

Net income can be calculated using the formula: Net Income = Beginning Retained Earnings + Net Income - Dividends. Plugging in the given values, we get: $20,000 + Net Income - $4,000 = $19,100. Solving for Net Income, we get: Net Income = $3,100. Therefore, the best choice is B.

On December 31,2013,the Balance in Retained Earnings Is $20,000