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At the beginning of the current year, X Company had assets of $600, liabilities of $300, and common stock of $100. During the current year, the company earned revenue of $750, incurred expenses of $500, and paid dividends of $100. All transactions were cash transactions.
Problem 1: The amount of retained earnings reported on the December 31 balance sheet for the current year would be
Option 1: $200
Option 2: none of the above.
Option 3: $150
Option 4: $250
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