Carpenter and Sons' balance sheet on January 1, 2012, had total assets of $73,000, total liabilities of $20,000, paid-in capital of $30,000, and retained earnings of $23,000

During the month of January, Carpenter and Sons' recognized revenues of $73,000, cost of goods sold of $47,000, depreciation expense of $12,000, the payment of February and March's rent totaling $2,500, and salary expense of $8,000. The retained earnings balance at January 31, 2012, will be
A) $29,000.
B) $27,750.
C) $31,000.
D) $41,000.
E) $26,500.

A