What is closing balance on zeta corporation retained earning

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Zeta corporation started its accounting year with an opening balance of $3,000,000 on its retained earnings reserve. During the year it paid a dividend of $250,000 to its ordinary shareholders and also issued 100000 bonus shares. The nominal (par value)of zetas shares is $10. Zeta incurred a corporation tax change of $300,000 for the year. At the end of the year the company had earned net profit after tax and all other expenses of $450,000.

Problem 1: What is the closing balance on zeta corporation retained earnings reserve?

Option 1: 2,900,000

Option 2: 3,200,000

Option 3: 1,900,000

Option 4: 3,450,000

Option 5: 2,200,000

Reference no: EM132769779

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