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Question
The income statement for Dobson Corporation reported net income of $22,400 for the year ended December 31 before considering the following:
- During the year, the company purchased available-for-sale securities.
- At year-end, the fair value of the investment portfolio was $2,100 more than cost.
- The balance of Retained Earnings was $83,000 on January 1.
- Dobson Corporation paid $9,000 in cash dividends during the year.
Compute the balance of Retained Earnings on December 31.
Answer
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