On January 1, Kimberling Corporation's Retained Earnings Account Had a Balance

question 34

Multiple Choice

On January 1, Kimberling Corporation's Retained Earnings account had a balance of $400,000. During the year, the board of directors declared cash dividends of $50,000 and small stock dividends with a market value of $40,000. Net income for the year amounted to $120,000. What is the balance in Retained Earnings appearing on the statement of stockholders' equity on December 31?

• A)$470,000
• B)$310,000
• C)$430,000
• D)$350,000

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