Bay Camera
the Company Reported the Following Items on Its

question 85

Multiple Choice

Bay Camera
The company reported the following items on its financial statements for the year ended December 31:
$$\begin{array} { l r l r } \text { Sales } & \text {\$780,000 } & \text { Cost of seles } & \$ 700,000 \\\text { Selling general and administrative expense } & 20,000 & \text { Other expense } & 15,000 \\\text { Dividends } & 5,000 & \text { Incone tax expense } & 12,500\end{array}$$
-Refer to the figure Bay Camera.What amount will be reported as retained earnings on the balance sheet at December 31,assuming this is the first year of operations?

• A) $22,500
• B) $27,500
• C) $42,500
• D) $80,000