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Financial statements for Bernard Corp. are presented below: BERNARD CORP. Total assets on the December 31, 2020 statement of financial position were $ 1,108,000. Accumulated depreciation on the equipment sold was $ 56,000.
-The balance in the Retained Earnings account at December 31, 2020 was
A) $ 500,000.
B) $ 440,000.
C) $ 380,000.
D) $ 180,000.

Question

Use the following information for questions.
Financial statements for Bernard Corp. are presented below:  BERNARD CORP.  Total assets on the December 31, 2020 statement of financial position were $ 1,108,000. Accumulated depreciation on the equipment sold was $ 56,000.
-The balance in the Retained Earnings account at December 31, 2020 was
A) $ 500,000. 
B) $ 440,000. 
C) $ 380,000. 
D) $ 180,000.

Quizplus · Accepted Answer

The correct answer cannot be determined without additional information such as the company's financial statements or specific transactions affecting the Retained Earnings account. Retained Earnings reflect the cumulative amount of net income minus dividends that a company has decided to reinvest in the business rather than distribute to shareholders. Without details on the company's earnings, losses, and dividend payments, it's impossible to accurately choose an option.

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