Lansing Limited had a beginning balance in its Retained Earnings account of $385,600.During the year,the company declared and paid a $4,700 dividend,and at the end of the year,it reported Retained Earnings of $399,860.The company's net income for the year was:

Question

Quizplus · Accepted Answer

To find the net income for the year, we need to use the following formula:

Net Income = Beginning Retained Earnings + Net Income - Dividends Paid - Ending Retained Earnings

Substituting the given values:

Net Income = $385,600 + Net Income - $4,700 - $399,860

Simplifying the equation:

Net Income = $18,960

Therefore, the net income for the year was $18,960, which corresponds to choice B.

Lansing Limited Had a Beginning Balance in Its Retained Earnings