The First Year of Operations for a Company Was Year

question 177

Multiple Choice

The first year of operations for a company was Year 1.The net income for Year 1 was $20,000 and dividends of $12,000 were paid.In Year 2,the company reported net income of $34,000 and paid dividends of $5,000.At the end of Year 1,the company had total assets of $150,000.At the end of Year 2,the company had total assets of $240,000. What is the amount of retained earnings at the end of Year 2?

• A)$37,000
• B)$240,000
• C)$29,000
• D)$269,000

---

Definitions:

Pearl Harbor Attack

A surprise military strike by the Imperial Japanese Navy Air Service against the United States naval base at Pearl Harbor, Hawaii, on December 7, 1941, leading to the United States' entry into World War II.

Surprise Attack

A military tactic involving an unexpected assault on an adversary, with the intent of catching them off guard and gaining a tactical advantage.

Spanish-American War

A conflict fought between Spain and the United States in 1898, resulting in the U.S. gaining territories in the western Pacific and Latin America.

War Of 1812

War fought with Britain, 1812–1814, over issues that included impressment of American sailors, interference with shipping, and collusion with Northwest Territory Indians; settled by the Treaty of Ghent in 1814.