A company had a beginning balance in retained earnings of $50,000.During the year the company earned net income of $85,000 and paid a $15,000 cash dividend.The company also declared a 2% stock dividend, which resulted in the issue of 10,000 new shares.At the time of the stock dividend, the shares were selling at a market price of $3.What is the balance in retained earnings at the end of the year?

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The ending balance in retained earnings is calculated as: Beginning balance ($50,000) + Net income ($85,000) - Cash dividend ($15,000) - Stock dividend (10,000 shares * $3 = $30,000) = $90,000.

A Company Had a Beginning Balance in Retained Earnings of $50,000.During