Crawford Company started the year with $60000 in its Common Stock account and a balance in Retained Earnings of $44000.During the year the company earned net income of $48000 and declared and paid $20000 of dividends.In addition the company sold additional common stock amounting to $28000.As a result the amount of its retained earnings at the end of the year would be

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The ending retained earnings is calculated as the beginning retained earnings ($44000) plus net income ($48000) minus dividends paid ($20000), resulting in $72000.

Crawford Company Started the Year with $60000 in Its Common