Retained Earnings (RE), Net Income (NI), and Dividends: RE 104

Retained Earnings (RE), Net Income (NI), and Dividends: RE 104

Beginning Retained Earnings (RE) Balance, 1/1/2025 $750,000
Net Income (NI) for the Year Ending at 12/31/2025 $150,000
Dividends ?
Ending Retained Earnings (RE) Balance, 12/31/2025 $840,000

Ending RE = Beginning RE + Net Income - Dividends
Ending RE = Beginning RE + Net Income - ?
Ending RE = $750,000 + $150,000 - ? = $840,000
Ending RE = $900,000 - ? = $840,000
? = Dividends = $900,000 - $840,000 = $60,000