MC Qu. 86 Mayfair Corporation has outstanding ...

Mayfair Corporation has outstanding 100,000 shares of $1 par value common stock as well as 24,000 shares of 11.0%, $100 par value cumulative preferred stock. At the beginning of the year, the balance in retained earnings was $850,000, and one year's dividends were in arrears. Net income for the current year is $540,000. Compute the balance in retained earnings at the end of the year if Mayfair Corporation pays a dividend of $3.4 per share on its common stock this year.

	$522,000.
	$604,000.
	$1,050,000.
	$1,126,000.