At the beginning of Year 2, XCompany had assets of $600, liabilities of $300, and common stock of $100. During 2016 thecompany earned revenue of $750, incurred expenses of $500, and paid dividends of $100. Alltransactions were cash transactions.

Required

calculate the amount of net income reported on the Year 2.

calculate the amount of retained earnings reported on the December 31, Year 2.