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Question - XYZ Company has a net loss of $100,000 for the year and pays dividends of $30,000 to its shareholders. How will this impact Retained Earnings?
A. Retained earnings will decrease by $70,000.
B. Retained earnings will decrease by $30,000.
C. Retained earnings will decrease by $130,000.
D. Retained earnings will decrease by $100,000.
E. Retained earnings will not change.
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