Concept #1: Retained Earnings and the BASE Formula

Example #1: Retained Earnings and the BASE Formula

Practice: On January 1, 2018, XYZ Company had a balance of retained earnings of $420,000. During 2018, the company earned net income of $205,000 and also paid dividends. If the balance of retained earnings on December 31, 2018 was $340,000, how much was paid in dividends?