On January 1, 20X1, Taylor Corporation had retained earnings of $6,500,000. During 20X1, Taylor had profit of $1,050,000 and dividends of $450,000. What is the amount of Taylor's retained earnings at the end of 20X1?

Question

Quizplus · Accepted Answer

Retained earnings at the end of 20X1 are calculated by starting with the beginning retained earnings, adding the profit for the year, and subtracting dividends paid. Therefore, $6,500,000 + $1,050,000 - $450,000 = $7,100,000.

On January 1, 20X1, Taylor Corporation Had Retained Earnings of $6,500,000