Answer:
A) retained earnings $40,000 and expenses $340,000.
Explanation:
Total Assets = Total Equity + Total Liabilities
$300,000 = Total Equity + $160,000
Total Equity = $300,000 - $160,000
Total Equity = $140,000
Now
Total Equity = Contributed Capital + Retained Earning
$140,000 = 100,000 + Retained Earning
Retained Earning = $140,000 - $100,000 = $40,000
Now
Retained Earning = Revenue - Expenses - Dividend paid
$40,0000 = $400,000 - Expenses - $20,000
$40,0000 = $380,000 - Expenses
Expenses = $380,000 - $40,000
Expenses = $340,000
