Answer:
$9,000,000
Explanation:
As we know, in preparing accounts, the following steps are considered:
From all the revenues earned, all the expenses are deducted, and then we get net revenues.
From such net revenues all the taxes are provided.
Then all the appropriation in the form of dividend is provided.
Firstly to preference and then to equity.
After that all the remaining earnings are added to retained earnings.
In the given instance,
Net Income - Dividend = $1,500,000 - $500,000 = $1,000,000
Now this will be added to opening retained earnings.
Therefore, retained earnings balance at year end = $8,000,000 + $1,000,000
= $9,000,000
