Question

Instruments had retained earnings of at December​ 31, . Net income for totaled ​, and dividends declared for were . How much retained earnings should report at December​ 31, ​?

Answer 1

B. $ 490,000

Explanation:

According to the given situation, the computation of retained earning in the year end is shown below:-

Ending retained earning = Beginning Retained Earnings + Net Income for the year - Dividend

= $360,000 + $180,000 - $50,000

= $490,000

Therefore for computing the ending retained earning we simply applied the above formula.