Reference no: EM132480245
Question - 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
Paid-in capital in excess of par value 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.
Required - Compute the year-end balance of the retained earnings for 2017.