Ending retained earnings account


Task: Nelson Company had equity accounts in 2000 as follows:

Common Stock ($1 Par Value) $120,000
Retained Earnings 32,000
Total Share holder's Equity $152,000

Projected income is $150,000 and the dividend per share to be paid immediately is 40%. What will the ending retained earnings account be?

A. $ 90,000

B. $ 92,000

C. $122,000

D. $210,000

E. $242,000

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Accounting Basics: Ending retained earnings account
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