Use the following information for questions.
Financial statements for Kiner Company are given below:

Total assets on the statement of financial position at December 31, 2011 are $2,216,000.Accumulated deprecia-tion on the equipment sold was $112,000.
-The balance in the Retained Earnings account at December 31, 2011 was

Question

Use the following information for questions.
Financial statements for Kiner Company are given below:
  
Total assets on the statement of financial position at December 31, 2011 are $2,216,000.Accumulated deprecia-tion on the equipment sold was $112,000.
-The balance in the Retained Earnings account at December 31, 2011 was

Quizplus · Accepted Answer

The Retained Earnings can be calculated using the formula: 
Retained Earnings = Total Assets - Total Liabilities - Common Stock - Paid-in Capital + Accumulated Depreciation - Equipment Sold. 
Using the information given in the financial statements, we have:
Retained Earnings = $2,216,000 - $1,544,000 - $112,000 - $800,000 + $112,000 
Retained Earnings = $760,000. Therefore, Choice C is correct.

Use the Following Information for Questions