Snowberry Corporation Had a Net Increase in Retained Earnings of $182,000

question 188

Multiple Choice

Snowberry Corporation had a net increase in Retained Earnings of $182,000 for the year.The corporation also paid $56,000 of cash dividends that had been declared in the previous year.This year,the corporation declared $50,400 of dividends but has not paid them as of year-end.Given this information,the net income for the current year must have been:

• A)$176,400
• B)$238,000
• C)$182,000
• D)$232,400

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Definitions:

Profits

The financial gain realized when the revenues generated from business activities exceed the expenses, costs, and taxes needed to sustain the activity.

Partnership

A business setup legally recognized, involving two or more partners sharing both management responsibilities and profits.

Partnership Agreement

A legally binding contract between partners that outlines the terms of the business relationship, roles, and responsibilities.

Total Investment

The complete amount of money invested in a particular project, asset, or portfolio, including all forms of investment such as stocks, bonds, and real estate.