The following information was extracted from the accounts of at 31 December 2022:

CR (DR)

Total reported income since incorporation $6,800,500

Total cash dividends paid ($2,950,000)

Unrealized holding loss on available-for-sale debt securities. ($470,500)

Total stock dividends distributed ($750,000)

Prior period adjustment, recorded 1 January 2022 $335,000

What should be the balance of the retained earnings at 31 December 2022?

Question 4Answer

a.

$3,100,500

b.

$2,965,000

c.

$3,435,500

d.

$4,736,000