During the year a cash dividend of 135000 was paid compute

Question

Problem - Income and Retained Earnings Relationships

Assume that retained earnings increased by $375,000 from December 31, 2008, to December 31, 2009, for Jarvie Distribution Corporation. During the year, a cash dividend of $135,000 was paid.

1. Compute the net income for the year.

2. Assume that the revenues for the year were $830,000. Compute the expenses incurred for the year.