1. When preparing the financial statements of Somersby Ltd, the accountant found the following information: Opening balance of Retained Earnings $15,000; Interim Dividends paid $2,500 (from dividends payable); Profit earned $20,000; Dividends Declared $5,000. The closing balance of Retained Earnings for Somersby Ltd is: a. $7,500. b. $30,000. c. $27,500. d. $15,000. e. None of the above is correct