1. A company had a beginning balance in retained earnings of $65,000. Net profit for the current year was $122,000. A cash dividends of $8,500 was declared and to be paid out early next year. The ending balance in retained earnings equals: A. Cr. balance $113,500.

B. Cr. balance $178,500.

C. Dr. balance $ 48,500.

D. Cr. balance $187,000.