Problem:

The Dayton Corporation began the current year with a retained earnings balance of $14,934. During the year, the company corrected an error made in the prior year, which was a failure to record depreciation expense of $3,108 on equipment. Also, during the current year, the company earned net income of $10,270 and declared cash dividends of $5,884.

Required:

Question: Compute the year end retained earnings balance.

Select the correct answer.

• $14,934
• $19,320
• $16,212
• $34,196

Note: Please show the work not just the answer.