The ending Retained Earnings balance of ABC decreased by $1.5 million from the beginning of the year. The company declared a dividend of $4.4 million during the year. What was the net income for the year?
The ending Retained Earnings balance of ABC decreased by $1.5 million from the beginning of the year. The company declared a dividend of $4.4 million during the year. What was the net income for the year?
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 18EB: Tart Restaurant Holdings, Incorporated began the year with a retained earnings balance of $950,000....
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Transcribed Image Text:The ending Retained Earnings balance of ABC decreased by $1.5 million from the beginning of the year. The company declared
a dividend of $4.4 million during the year. What was the net income for the year?
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Answer)
Calculation of Net Income earned During the Year
Net Income Earned = (Ending Balance of Retained Earnings – Beginning Balance of Retained Earnings) + Dividends declared during the period
Net Income Earned = - $ 1.50 million + $ 4.40 million
Net Income Earned = $ 2.90 million
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