Quartz Instruments had Retained Earnings of $145,000 at December 31,2015.Net income for 2016 was $90,000,and dividends for 2016 were $30,000.What amount of Retained Earnings should be reported at December 31,2016?
A) $205,000
B) $235,000
C) $140,000
D) $175,000

Question

Quizplus · Accepted Answer

Retained Earnings at the end of 2016 is calculated as the beginning Retained Earnings plus Net Income minus Dividends: $145,000 + $90,000 - $30,000 = $205,000.

Quartz Instruments Had Retained Earnings of $145,000 at December 31,2015