QUESTION 0 Net income for the period was 200,000. The retained earnings account had a beginning balance of 525,000 If the company paid dividends of 20,000 during the year, what is the ending balance in retained earnings? ANSWER 245,000 5205,000 230,000 25,000 155,000 IDONT KNOWYET

The correct answer is $\boxed{\$705,000}$<br /><br />Here's the calculation:<br /><br />* **Beginning Retained Earnings:** $525,000<br />* **Add: Net Income:** $200,000<br />* **Subtotal:** $725,000<br />* **Less: Dividends:** $20,000<br />* **Ending Retained Earnings:** $705,000<br />