Grason Corporation is preparing a budgeted balance sheet for current year. The retained earnings balance at December 31, of the previous year was $532,500. The current year budgeted income statement shows expected net income of $111,500. The company expects to declare dividends during the current year amounting to $39,500. The expected balance on December 31 of the current year in retained earnings on the budgeted balance sheet is:

 Grason Corporation is preparing a budgeted balance sheet for current year. The retained earnings balance at December 31, of the previous year was $532,500. The current year budgeted income statement shows expected net income of $111,500. The company expects to declare dividends during the current year amounting to $39,500. The expected balance on December 31 of the current year in retained earnings on the budgeted balance sheet is:
Multiple Choice
•    
$532,500.
•    
$604,500.
•    
$644,000.
•    
$493,000.
•    
$683,500.

Answer

$604,500.