Use the following information for questions 63 through 67.
Financial statements for Kiner Company are given below: Total assets on the balance sheet at December 31, 2015 are $4,432,000. Accumulated deprecia-tion on the equipment sold was $224,000.
-The balance in the Retained Earnings account at December 31, 2015 was
A) $720,000.
B) $1,760,000.
C) $1,520,000.
D) $2,000,000.

Question

Use the following information for questions 63 through 67.
Financial statements for Kiner Company are given below:  Total assets on the balance sheet at December 31, 2015 are $4,432,000. Accumulated deprecia-tion on the equipment sold was $224,000.
-The balance in the Retained Earnings account at December 31, 2015 was
A) $720,000. 
B) $1,760,000. 
C) $1,520,000. 
D) $2,000,000.

Quizplus · Accepted Answer

The balance in retained earnings can be calculated as:
Retained Earnings = Total Assets - Total Liabilities - Common Stock - Paid-in Capital - Accumulated Depreciation
Retained Earnings = $4,432,000 - $1,824,000 - $800,000 - $88,000 - $224,000 = $1,520,000. Therefore, the correct answer is option C.

Use the Following Information for Questions 63 Through 67