At January 1, 2022, Blue Corporation had a credit balance of $3,050,000 in its retained earnings account.During the year, Blue paid $275,000 in dividends, reported net income of $420,000 and other comprehensive income of $750,000.The December 31 balance of retained earnings is

A) $3,195,000.
B) $3,945,000.
C) $2,445,000.
D) $2,775,000.

Retained Earnings

The cumulative amount of net income kept within a company after dividends are paid, reinvested in the business or used to pay off debt.

Net Income

The total earnings of a company after subtracting all expenses, including taxes and operating costs, from its total revenues, indicating the company’s profit.

Dividends

A portion of a company’s earnings distributed to its shareholders as a reward for their investment.