On January 1,20A,Taylor Corporation had retained earnings of $6,500,000.During 20A,Taylor had profit of $1,050,000 and dividends of $450,000.What is the amount of Taylor's retained earnings at the end of 20A?

Question

Quizplus · Accepted Answer

Retained Earnings at the end of 20A will be calculated as follows:
Retained Earnings = Retained Earnings at beginning of the year + Profit - Dividends
Retained Earnings = $6,500,000 + $1,050,000 - $450,000
Retained Earnings = $7,100,000
Therefore, the option C is correct.

On January 1,20A,Taylor Corporation Had Retained Earnings of $6,500,000