Net income and dividends are for the current year. January 1 and December 31 refer to the beginning and end of the current year. Which of the following is correct?

net income - dividends = retained earnings Dec 31 - retained earnings Jan 1 net income - dividends = retained earnings Jan 1 retained earnings in Dec 31 net income = retained earnings in Jan 1 - retained earnings in Dec 31 dividends net income dividends = retained earnings in Jan 1 - retained earnings in Dec 31