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Net Income Is $1,000,000 for the Year, EBT Is $2,500,000

Question 125

Multiple Choice

Net income is $1,000,000 for the year, EBT is $2,500,000, retained earnings in January were $5,000,000, preferred dividends paid for the year are $100,000, common stock dividends paid for the year are $300,000, and common shares outstanding are 1,000,000. What are end- of- year retained earnings?


A) $5,600,000
B) $5,900,000
C) $6,000,000
D) $7,100,000

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