1)Which of the following is true of retained earnings?

Select one:

A.Retained earnings increase with purchase of assets.

B.Retained earnings decrease with collection of revenue.

C.Retained earnings decrease with payment of dividends.

D.Retained earnings increase with payment on account.

2)The balance of stockholders' equity at the beginning of the year and the end of the year was $50,000 and $60,000, respectively. The company issued no common stock during the year. Dividends were $24,000. What was the net income or loss for the year?

Select one:

A.Net income of $84,000

B.Net income of $34,000

C.Net loss of $34,000

D.Net loss of $84,000