2.Newland Company reported retained earnings at December 31, 2018, of $350,000. The following transactions occurred during 2019.

An error was discovered. In 2017, depreciation expense was recorded at $45,000, but the correct amount was $25,000.

Declared cash dividends $100,000.

Declared stock dividends $70,000.

Net income was $450,000.

c- The amount of retained earning reported in Dec 31, 2019 is:

a.

$470,000

b.

$955,000

c.

$905,000

CLEAR MY CHOICE