Clowns-R-Us reported the following in the statement of comprehensive income for the year ended December 31:

Income from continuing operations before tax
850,000
Income tax expense
(340,000)
Net income
510,000
Other comprehensive income
130,000
Comprehensive income
640,000

During the year, the company paid $105,000 in dividends and purchased treasury stock with a par value of $20,000 at a cost of $95,000. If the balance of Retained Earnings at the beginning of the year was $4,400,000, what is the balance of Retained Earnings at the end of the year?

A) $5,145,000
B) $5,050,000
C) $4,805,000
D) $4,710,000

Answer: C

Business

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