If a corporation had net income of $60,000 and $20,000 in cash dividends were declared and paid then the retained earnings account would increase by $40,000.

Name: If a corporation had net income of $60,000 and $20,000 in cash dividends were declared and paid then the retained earnings account would increase by $40,000.
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The retained earnings increase by the net income minus the dividends paid, which is $60,000 - $20,000 = $40,000.

If a Corporation Had Net Income of $60,000 and $20,000