Use the Following Information for Questions

question 112

Multiple Choice

Use the following information for questions.
At December 31, 2019, the balance in Helsinki Ltd.'s retained earnings account was $ 420,000. During 2020, Helsinki had the following transactions:
Acquired 5,000 treasury shares at $ 27 a share. The shares are no par and had originally been issued for $ 24 per share. There had been no previous treasury shares transactions.
Sold the 5,000 treasury shares at $ 32 a share.
Reported net income of $ 150,000.
-At December 31, 2019, the balance of Glasgow Ltd.'s retained earnings account was $ 450,000. During 2020, the company had the following transactions: Acquired 5,000 treasury shares at $ 75 per share. The shares are no par value and had originally been issued for $ 65 per share. There had been no previous treasury share transactions.
Net income for 2020 was $ 400,000.
Sold the 5,000 treasury shares at $ 80 per share.
What is the balance in retained earnings at December 31, 2020?

• A) $ 900,000
• B) $ 850,000
• C) $ 775,000
• D) $ 762,500