Selected information from the accounts of Row Co. on December 31, 20X1, follows:
Total net income since incorporation $1,570,000
Total cash dividends paid since
incorporation 716,000
Total value of stock dividends
distributed 84,000
Excess of cost of treasury stock sold
over proceeds received, accounted
for using cost method 205,000
Balance in Additional Paid-in Capital
–-Treasury Stock account $208,500 (credit)
In its December 31, 20X1, financial statements, what amount should Row report as retained
earnings?
1.$225,000
2.$205,000
3.$195,000
4.$125,000