Answer:
$5,700,000
Explanation:
The net income for the year is $1,000,000
The EBT is $2,500,000
The retained earnings in January were $5,000,000
The amount of common stock dividend that was paid for the year is $300,000
The common shares that are outstanding is 1,000,000
Therefore, the end-of-year retained earnings can be calculated as follows
= Net income+Retained earning-stock paid
= $1,000,000+$5,000,000-$300,000
= $6,000,000-$300,000
= $5,700,000
Hence the end-of-year retained earnings is $5,700,000
