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The stockholders' equity of Crater Inc. at December 31, 2016, appears below: Common stock, $25 par value, 200,000 shares authorized,135,000 shares issued and outstanding $3,375,000
The stockholders' equity of Crater Inc. at December 31, 2016, appears below:
| $3,375,000 | |||
| $1,750,000 | |||
Retained Earnings | $2,575,000 |
During 2017, the following transactions occurred:
May 10: | Declared a 10% common stock dividend when market value was $50 per share |
August 31: | Issued the stock dividend declared on June 15. |
December 10: | Declared a cash dividend of $3.50 per share to be paid in January 2018. |
December 31: | Recognized net income of $1,630,500. |
Compute the year-end balance of the retained earnings for 2017.
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