Nina Corp.had the following net income (loss)the first three years of operation: $7,100, ($1,600),and $3,600.If the Retained Earnings balance at the end of year three is $1,100,what was the total amount of dividends paid over these three years?
A)$500.
B)$0.
C)$9,100.
D)$8,000.

Question

Quizplus · Accepted Answer

The total net income over three years is $7,100 - $1,600 + $3,600 = $9,100. The retained earnings at the end of year three is $1,100. Therefore, the dividends paid must be $9,100 - $1,100 = $8,000.

Nina Corphad the Following Net Income (Loss)the First Three Years of of Operation