Respuesta :
Answer:
The correct answer is $68,000.
Explanation:
According to the scenario, the given data are as follows:
Retained balance for 2015 = $250,000
Retained balance for 2014 = $330,000
Dividends for 2015 = $12,000
So, we can calculate the firm's earnings (loss) after taxes in 2015 by using following formula:
Net earning after taxes = dividend payment + (retained balance of current year - retained balance of previous year)
= $12,000 + ( $250,000 - $330,000)
= $12,000 + ( - $80,000)
= $12,000 - $80,000
= -$68,000 ( - shows the loss)
Hence the firm's earnings (loss) after taxes in 2015 is $68,000.
