The next question deals with the December $31,2019$ Balance Sheet of Horan Industries.

In $2019,$ Horan produced net income of $$10,000.$ Also during $2019,$ $$5,000$ in dividends were declared and paid. What was Horan's retained earnings balance one year earlier on December $31,2018?$

$$30,000$

$$35,000$

$$40,000$

$$45,000$