登录之后可查看解析

Answer (B) is correct . Dividends declared but not paid reduce retained earnings. Thus, the year-end balance of retained earnings is calculated as follows: January 1 balance $???529,000 Net income 2,496,000 Retained earnings available $3,025,000 Dividends paid during year $750,000 Dividends declared?in Dec. 50,000 (800,000) Year-end balance $2,225,000

Answer (A) is incorrect because The amount of $1,696,000 does not include the beginning balance.
Answer (C) is incorrect because The amount of $2,275,000 results from a failure to deduct the dividend that was unpaid; such a dividend would be a liability of the corporation.
Answer (D) is incorrect because The amount of $3,025,000 results from a failure to deduct dividends.