Grass Gadgets Had Sales of $30 Million and Net Income

Multiple Choice

Grass Gadgets had sales of $30 million and net income of $2 million in 2008.Grass paid a dividend of $1.5 million.Assuming that their beginning balance for retained earnings was $3 million,calculate their ending balance for retained earnings.

A) $2.5 million
B) $3 million
C) $3.5 million
D) $4 million