The Income Statement for the Year 2011 of Poole Co

Multiple Choice

The income statement for the year 2011 of Poole Co.contains the following information: $\begin{array}{lr}\text { Revenues }&&\$70,000\\\text { Expenses: }\\\text { Wages Expense } & \$ 45,000 \\\text { Rent Expense } & 12,000 \\\text { Advertising Expense } & 6,000 \\\text { Supplies Expense } & 6,000 \\\text { Utilities Expense } & 2,500 \\\text { Insurance Expense } & 2,000\\\text { Total expenses }&&73,500\\\text { Net income (loss) }&&\$(3,500) \end{array}$
At January 1, 2011, Poole reported Retained Earnings of $\$ 50,000$ . Dividends for the year totalled $\$ 10,000$ .
At December 31,2011 , the company will report Retained Earnings of

A) $\$ 13,500$ .
B) $\$ 36,500$ .
C) $\$ 40,000$ .
D) $\$ 43,500$