Panmar Inc

Multiple Choice

Panmar Inc. is preparing a statement of stockholders' equity for 2016. On January 1, 2016, Panmar started the year with a $200,000 credit balance in its retained earnings account. During 2016, the company earned net income of $140,000. Panmar declared dividends of $80,000 and paid $50,000 of those dividends. Also, the company received cash of $100,000 for additional shares of common stock issued and then paid $30,000 to repurchase shares of common stock. What is the balance in retained earnings on December 31, 2016?

A) $260,000.
B) $290,000.
C) $330,000.
D) $390,000.