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

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