Dayton Corporation Began the Current Year with a Retained Earnings

question 198

Multiple Choice

Dayton Corporation began the current year with a retained earnings balance of $32,000. During the year, the company corrected an error made in the prior year, which was a failure to record a depreciation expense of $3,000 on equipment. Also, during the current year, the company earned net income of $12,000 and declared cash dividends of $7,000. Compute the year-end retained earnings balance.

• A) $34,000
• B) $37,000
• C) $41,000
• D) $44,000

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