First Corporation had Retained Earnings at the end of December 31,2018 of $900,000.During 2019,the company had net income of $340,000 and declared dividends of $40,000.The amount of Retained Earnings reported on the balance sheet as of December 31,2019 will be:
A)$860,000.
B)$1,200,000.
C)$1,240,000.
D)$1,280,000.

Question

Quizplus · Accepted Answer

Ending retained earnings = Beginning retained earnings + Net income − Dividends
= $900,000 + $340,000 − $40,000 = $1,200,000

First Corporation Had Retained Earnings at the End of December