Problem - Raceway Company reported the following balance sheet amounts at December 31, 2007
Current assets $70,000
Current liabilities 40,000
Long-term liabilities 90,000
Operational assets 200,000
Common stock, par $10 (10,000 shares issued at par) 100,000
The total amount of retained earnings on December 31, 2007, was
A) $50,000.
B) $40,000.
C) $30,000.
D) $20,000.
E) None of the above is correct.