Dividends paid by Hoogle Ltd from the year 20X1 to 20X3 are shown below. Interim dividends are announced in December and paid in March while final dividends are announced in June and paid in September. The financial year is ended at 30th June.

Dividends paid by Hoogle Ltd from the year 20x1 to 20x3 are shown below. Interim dividends are announced in December and paid in March while final dividends are announced in June and paid in September. The financial year is ended at 30th June. Year Interim dividends Final dividends 20X1 300,000 500,000 20X2 400,000 600,000 20X3 500,000 700,000 How much is paid for the dividends and how much retained earnings is reduced by dividends in the year 20x2? Paid dividends $400,000, reduced retained earnings $1,000,000 Paid dividends $900,000, reduced retained earnings $1,000,000 Paid dividends $400,000, reduced retained earnings $400,000 Paid dividends $1,000,000, reduced retained earnings $400,000