24. Under ASPE, recognition in the financial statements is required for. a) Loss contingencies that are more likely than not and can be reasonably estimated. b) Gain contingencies that are more likely than not and can be reasonably estimated. c) Loss contingencies that are unlikely and can be reasonably estimated. d) gain contingencies that are unlikely and can be reasonably estimated. e) Contingent liabilities are only disclosed in the notes to the financial statements under ASPE AFA 300 Page 617 A private corporation was organized on June 30 and follows ASPE. At that time, 100,000 shares of common were issued at $22.00 per share cash. $780,000 of the proceeds was used to buy items needed to run the business. For example, equipment. The corporation had promised to pay $2.00 per share in dividends during the year if net income exceeded $400,000. Net income was $600,000. However, due to a cash shortage the corporation and shareholders agreed not give out a dividend. If no other transaction occurred which would affect retained earnings, the corporation should report on June 30 of the following year, retained earnings of: $600,000 $400,000 $200,000 Not enough information is given to answer this