Solar Communications Had the Following Balances in Its Stockholders' Equity $\begin{array} { l l } \text { Paid-in Capital } & \$ 53,000 \\\text { Retained Earnings } & \$ 31,000 \\\end{array}$

question 108

Multiple Choice

Solar Communications had the following balances in its stockholders' equity accounts as of December 31,20X9:
$\begin{array} { l l } \text { Paid-in Capital } & \$ 53,000 \\\text { Retained Earnings } & \$ 31,000 \\\end{array}$
During the year ended December 31,20X9,Solar Communications generated $36,000 in net income,and declared and paid $16,000 in dividends.The ending balance in the retained earnings account at December 31,20X8,was

• A)$11,000.
• B)$26,000.
• C)$13,000.
• D)$67,000.
• E)$40,000.

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