Reference no: EM132495147

At December 31, 2018, Laurier Limited, had the following shareholders' equity:

Common shares, 75,000 issued                   $300,000

Retained earnings                                  $750,000

During 2019, the following events occurred:

1. On February 1, the company declared and paid a $0.50 cash dividend.
2. On June 10, the company split the common shares two for one.
3. On December 1, the company declared and paid a $0.40 cash dividend.
4. At December 31, the company reported a loss of $106,000 for the year.

Question 1: At December 31, 2019, the balance of retained earnings is

Option 1: $546,500

Option 2: $576,500

Option 3: $620,000

Option 4: $380,000

Option 5: None of the above