Casper, Inc

Multiple Choice

Casper, Inc. has total assets of $250,000, total debt of $50,000, and 50,000 shares of common stock with a book value of $115,000 as of the beginning of their fiscal year. During the year the company produced taxable income of $138,000. The company also paid quarterly dividends of $.40 a share during the year. The tax rate is 35%. What is the amount of the retained earnings at the end of the fiscal year?

A) $74,700
B) $75,300
C) $94,700
D) $143,000
E) $154,700