1. During the process of closing its books at the end of the year, The Bates Motel's accountant closed revenue accounts totaling $100,000 and expense accounts totaling $45,000. The company's owner, Norman Bates, decided to pay $10,000 in dividends for the year. Which of the following statements is true?

   		Retained Earnings decreased by $45,000 during the year.
   		Retained Earnings increased by $55,000 during the year.
   		Retained Earnings increased by $45,000 during the year.
   		Net Income for the company was $45,000 for the year.