Answer:
The retained earnings balance at the beginning of 2014 is $1,816,000
Explanation:
In this question, we have to apply the ending retained earning formula which is shown below:
The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid
$2,184,000 = Beginning balance of retained earnings + $402,000 - $34,000
$2,184,000 = Beginning balance of retained earnings + $368,000
So, the Beginning balance of retained earnings would equal to
= $2,184,000 - $368,000
= $1,816,000
