A Corporation Had a Net Increase in Retained Earnings of $65,000

question 114

Multiple Choice

A corporation had a net increase in retained earnings of $65,000 for the year.The corporation also paid $20,000 of cash dividends that had been declared in the previous year.This year,the corporation declared $18,000 of dividends but has not paid them as of year-end.Given this information,the net income for the current year must have been:

• A)$63,000
• B)$85,000
• C)$65,000
• D)$83,000

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Definitions:

Reciprocating Machine Element

A component of machinery that moves back and forth or up and down, typically converting rotary motion into linear motion or vice-versa.

Rotating

Refers to an object or part that moves in a circle around an axis or point, commonly seen in machinery and mechanical devices.

Oscillating

Moving or swinging back and forth at a regular speed.

Technical Drawing

The act or discipline of creating diagrams that visually communicate how something functions or is constructed.