_________ The board of directors decided to pay 50 percent of the fi rm’s $460,000 earnings in dividends to the stockholders. The fi rm has retained earnings of $680,000 on the books.

After the dividends are paid, which of the following statements is true about the fi rm’s retained earnings account?

a. The new value of the fi rm’s retained earnings is $910,000.

b. The new value of the fi rm’s retained earnings is $450,000.

c. The fi rm failed to reach its profi t goal.

d. Each shareholder will receive more than he or she received last year.

e. The fi rm’s retained earnings are too high.