McKinney Corporation had beginning retained earnings of $2,242,000 and ending retained earnings of $2,499,000. During the year they issued common stock totaling $141,000. No dividends were paid. What was their net income for the year?
A) $257,000
B) $116,000
C) $398,000
D) $323,000

Question

Quizplus · Accepted Answer

The net income can be calculated by the change in retained earnings since no dividends were paid. Ending retained earnings ($2,499,000) minus beginning retained earnings ($2,242,000) equals $257,000.

McKinney Corporation Had Beginning Retained Earnings of $2,242,000 and Ending