Net income for the period was 200,000. The retained earnings account had a beginning balance of 25,000. If the company paid dividends of 20,000 during the year, what is the ending balance in retained earnings? ANSWE N 245,000 205,000 230,000 25,000 155,000 IDON'T KNOWYET

Here's how to calculate the ending retained earnings:<br /><br />* **Beginning Retained Earnings:** $25,000<br />* **Add: Net Income:** $200,000<br />* **Subtotal:** $225,000<br />* **Less: Dividends:** $20,000<br />* **Ending Retained Earnings:** $205,000<br /><br />Therefore, the correct answer is $\boxed{\$205,000}$.<br />