Problem:
TriCycle, Corp began the year 2008 with 25 million in retained earnings.The firm earned net income of $7millon in 2008 and paid $1 million to its preffered stockholders and $3million to its common stockholders.
Required:
Question: What is the year-end 2008 balance in retained earning for TriCycle?
Note: Please provide reasons to support your answer.