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Question - When preparing the financial statements of Somersby Ltd, the accountant found the following information: Opening balance of Retained Earnings $15,000; Interim Dividends paid $2,500; Profit earned $20,000; Dividends Declared $5,000. Compute the closing balance of Retained Earnings for Somersby Ltd?
a. $15 000.
b. $30 000.
c. $7,500.
d. $27,500.
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