Answer:
b. The amount distributed in any one year can never exceed the net income reported for that year.
Explanation:
If the companys had 100,000 net income per year during 10 year
His retained earnings amount will be 1,000,000
Then, suppose next year income is also 100,000
The company is not doing anything wrong if it distribute dividends for 400,000 as their retained earnings can afford this dividends
