For the Past Five Years,Mookie Consulting Services Reported the Following

question 20

Multiple Choice

For the past five years,Mookie Consulting Services reported the following annual net income and dividend amounts: If Mookie had Retained Earnings of $88,000 at the end of year 5,what was the company's Retained Earnings at the beginning of Year 1?
$$\begin{array} { | l | r | r | } \hline \text { Year } & \text { Net Income } & \text { Dividends } \\\hline 1 & \$ 22,000 & \$ 2,000 \\\hline 2 & 17,000 & 2,000 \\\hline 3 & 9,000 & 1,000 \\\hline 4 & 14,000 & 3,000 \\\hline 5 & 25,000 & 4,000 \\\hline\end{array}$$

• A)$13,000.
• B)$25,000.
• C)$7,000.

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Definitions:

Resale

Resale refers to the action of selling a product or asset to another party after it has been bought, often used in the context of goods bought for the purpose of selling them at a profit.

Straight-Line Method

A technique for calculating depreciation by uniformly distributing the cost of an asset across its lifespan.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset over its useful life until a specific date.

Salvage Value

An asset’s foretold selling price at the finish of its service period.