Problem:
Triplette, Corp. began the year 2008 with -$5 million in retained earnings. The firm earned net income of $10 million in 2008 and paid $2 million to its preferred stockholders and $1 million to its common stockholders.
Required:
Question: What is the year-end 2008 balance in retained earnings for Triplette?
- $2 million
- $8 million
- $5 million
- $18 million
Note: Please show basic calculation