Mariposa Corporation had a Retained Earnings balance on January 1,20x4,of $936,000;declared cash dividends during 20x4 in the amount of $159,900,of which $39,000 were not paid until 20x5;and reported an ending balance of Retained Earnings of $1,326,000.Based on these facts alone,net income for 20x4 for Mariposa Corporation must have been

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To find the net income for 20x4, we start with the ending Retained Earnings balance and work backward. The ending balance is $1,326,000. We subtract the beginning balance of $936,000 to find the total change in Retained Earnings, which is $390,000. However, we must also account for dividends declared during 20x4 ($159,900). Since dividends reduce Retained Earnings, we add them back to find the net income: $390,000 + $159,900 = $549,900.

Mariposa Corporation Had a Retained Earnings Balance on January 1,20x4,of