ABC Corporation has published its annual financial statements for the year ended December 31, 2022. Among the disclosures included is the Statement of Changes in Equity . The company reported the following changes during the year: Beginning Retained Earnings: $1,000,000 Net Income for the year: $400,000 Dividends declared and paid: $150,000 Share capital issued: $200,000 Based on the information provided, what is the ending balance of Retained Earnings as reported in the Statement of Changes in Equity for the year ended December 31, 2022?

Exam

CFA Level 1

Section

Difficulty

Financial Reporting and Analysis

Calculation of Ending Retained Earnings

Hard Financial Statements Statement Of Changes In Equity

ABC Corporation has published its annual financial statements for the year ended December 31, 2022. Among the disclosures included is the Statement of Changes in Equity. The company reported the following changes during the year:

Beginning Retained Earnings: $1,000,000
Net Income for the year: $400,000
Dividends declared and paid: $150,000
Share capital issued: $200,000

Based on the information provided, what is the ending balance of Retained Earnings as reported in the Statement of Changes in Equity for the year ended December 31, 2022?

$1,250,000

$1,200,000

$1,400,000

Hint

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