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Beta Company Was Founded in 20013

Question 89

Multiple Choice

Beta Company was founded in 20013. Its yearly earnings and dividend payments are shown here:
2013: Net income of $4,000, paid zero dividends
2014: Net income of $20,000, paid $10,000 dividends
2015: Net income of $8,000, paid $5,000 dividends
2016: Net loss of $22,000, paid zero dividends
At the end of 2016, what would be the balance in Retained earnings?


A) Negative $22,000
B) Positive $32,000
C) Negative $5,000
D) Positive $1,000

Correct Answer:

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