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Question - Bagwell's net income for the year ended December 31, Year 2 was $185,000. Information from Bagwell's comparative balance sheets is given below. Compute the cash received from the sale of its common stock during Year 2.
At December 31
Year 2
Year 1
Common Stock, $5 par value
$500,000
$450,000
Paid-in capital in excess of par
948,000
853,000
Retained earnings
688,000
582,000
If net income for the period was $139,950, dividends distributed were $79,000. What was the beginning retained earnings for the period?
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