Miter Corporation had a credit balance of $5,450,000 in its retained earnings account as of January 1, 2014. During the year Miter paid $250,000 in dividends, reported net earnings of $560,000 and comprehensive income of $750,000. The December 31 balance of retained earnings is:

Question

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The retained earnings balance is calculated by adding net earnings to the beginning retained earnings and subtracting dividends: $5,450,000 + $560,000 - $250,000 = $5,760,000. Comprehensive income does not directly affect retained earnings.

Miter Corporation Had a Credit Balance of $5,450,000 in Its