Question $16(2$ points$)$

Bay Camera

The company reported the following items on its financial statements for the current year ended December $31$:

Sales

$$780,000$ Cost of Sales

$$700,000$

Selling, general & administrative expense

$20,000$ Other Expense

$15,000$

Dividends

$5,000$ Income Tax Expense

$12,500$

What amount will be reported as Retained Earnings on the Balance Sheet at December $31,$ current year, assuming

this is the first year of operations?

$$22,500$

$$27,500$

$$42,500$

Not enough information is provided.