A corporation has $250,000 in retained earnings. The board of directors appropriates $50,000 for the purchase of a new building. Which of the following would be included in the entry to record this appropriation?
A) Appropriated retained earnings would be debited for $20,000.
B) Retained earnings would be debited for $50,000.
C) Cash would be credited for $20,000.
D) No formal entry would be made.
Correct Answer:
Verified
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