At the beginning of 2010, Trey Corp. had $341,000 in Retained Earnings. During 2010, Trey Corp. had $450,000 of revenue and $260,000 of expenses. Dividends declared and paid in 2010 were $25,000. Which of the following statements is(are) true?

Question

Quizplus · Accepted Answer

Net income for 2010 is calculated as revenue minus expenses, which is $450,000 - $260,000 = $190,000, making statement B true. To find the Retained Earnings at the end of 2010, start with the beginning Retained Earnings, add net income, and subtract dividends: $341,000 + $190,000 - $25,000 = $506,000, making statement C true.

At the Beginning of 2010, Trey Corp