Moore Industries
Moore Industries began operations on January 2, 2017, with an investment of $50,000 by each of its two stockholders. Net income for its first year of business was $240,000. Moore Industries paid a total of $100,000 in dividends to its stockholders during the year.

-Read the information about Moore Industries.What is the company's retained earnings balance at December 31,2017?
A)$140,000
B)$190,000
C)$240,000
D)$340,000

Question

Moore Industries
Moore Industries began operations on January 2, 2017, with an investment of $50,000 by each of its two stockholders. Net income for its first year of business was $240,000. Moore Industries paid a total of $100,000 in dividends to its stockholders during the year.

-Read the information about Moore Industries.What is the company's retained earnings balance at December 31,2017?
A)$140,000
B)$190,000
C)$240,000
D)$340,000

Quizplus · Accepted Answer

Retained earnings at the end of the year would be the net income ($240,000) minus the dividends paid ($100,000), which equals $140,000.

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