Dreyfuss Corporation reports the following items: $\begin{array}{ll}
\text { Unappropriated retained earnings, beginning of year: } & \$ 800,000 \
\text { Net income: } & 700,000 \
\text { Federal income tax refund for last year taken directly to retained earnings: } & 50,000 \
\text { Cash dividends paid this year: } & 500,000
\end{array}$
The unappropriated retained earnings at year-end are

Question

Dreyfuss Corporation reports the following items: $\begin{array}{ll}
\text { Unappropriated retained earnings, beginning of year: } & \$ 800,000 \
\text { Net income: } & 700,000 \
\text { Federal income tax refund for last year taken directly to retained earnings: } & 50,000 \
\text { Cash dividends paid this year: } & 500,000
\end{array}$
 The unappropriated retained earnings at year-end are

Quizplus · Accepted Answer

We can find the unappropriated retained earnings by subtracting the total amount of dividends declared from the total amount of net income:
Unappropriated retained earnings = Net income - Dividends declared
= $2,500,000 - $1,450,000
= $1,050,000

Therefore, the answer is B.

Dreyfuss Corporation Reports the Following Items The Unappropriated Retained Earnings at Year-End Are A) $1,000,000

Dreyfuss Corporation Reports the Following Items The Unappropriated Retained Earnings at Year-End Are
A) $1,000,000