Blue Fin Started the Current Year with Assets of $840,000,liabilities

question 129

Multiple Choice

Blue Fin started the current year with assets of $840,000,liabilities of $420,000 and common stock of $240,000.During the current year,assets increased by $480,000,liabilities decreased by $60,000 and common stock increased by $330,000.There was no payment of dividends to owners during the year. Based on this information,what was the amount of Blue Fin's retained earnings at the beginning of the year?

• A)$180,000
• B)$1,020,000
• C)$660,000
• D)$420,000

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Definitions:

Break-Even Price

The market price that an asset must reach for an investor to recover their initial investment without making a profit or loss.

Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy an asset at a specified price within a specified time.

Premium

Premium often refers to the additional cost above the normal or nominal amount, in contexts such as insurance payments, above-par bond prices, or the price paid for options contracts.

Lookback Options

A type of option which allows the holder to "look back" over the time period of the option to select a price that is most advantageous for exercising their option.