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During the current year, a corporation earned income of $30,000, sold common shares for cash of $50,000, paid dividends of $25,000, and paid off debt

During the current year, a corporation earned income of $30,000, sold common shares for cash of $50,000, paid dividends of $25,000, and paid off debt of $5,000.

The retained earnings account ________.

1. decreased $5,000

2. increased $30,000

3. stayed the same

4. increased $5,000

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