A firm's year-end retained earnings balances are $320,000 and $400,000,for 2018 and 2019,respectively.The firm reported net profits after taxes of $100,000 in 2019.The firm's dividend payment for 2019 is ________.

Question

Quizplus · Accepted Answer

The formula to calculate dividend payment is: 
Dividend payment = Net profit after taxes - Increase in retained earnings
= $100,000 - ($400,000 - $320,000)
= $100,000 - $80,000
= $20,000

Therefore, the dividend payment for 2019 is $20,000. The correct choice is B.

A Firm's Year-End Retained Earnings Balances Are $320,000 and $400,000,for