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

Question

Quizplus · Accepted Answer

Unappropriated retained earnings at year-end can be calculated as follows: 
Beginning retained earnings + Net income - Dividends - Federal income tax refund taken directly to retained earnings
= $800,000 + $700,000 - $500,000 - $50,000
= $950,000
Therefore, the correct option is B, $1,050,000.

Dreyfuss Corporation Reports the Following Items: Unappropriated Retained Earnings, Beginning