At the End of Year 2, Retained Earnings for the Baker

question 200

Multiple Choice

At the end of Year 2, retained earnings for the Baker Company was $2,650. Revenue earned by the company in Year 2 was $2,900, expenses paid during the period were $1,550, and dividends paid during the period were $950. Based on this information alone, what was the amount of retained earnings at the beginning of Year 2?

• A) $3,050
• B) $2,250
• C) $5,800
• D) $1,300

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