A corporation had a year end 2004 retained earnings balance of $220,000. The firm reported net profits after taxes of $50,000 in 2005 and paid dividends in 2005 of $30,000. The firm's retained earnings balance at year end 2005 was
A) $240,000.
B) $250,000.
C) $270,000.
D) $300,000.

Question

Quizplus · Accepted Answer

Retained earnings = Beginning retained earnings + Net income - Dividends= 220,000 + 50,000 - 30,000= $240,000

A Corporation Had a Year End 2004 Retained Earnings Balance