Question $5$

Eagle Corp, reported the following information for the year: Revenues $$250,000,$ expenses

$$120,000,$ stock issuance $$40,000$ and cash dividends $$65,000.$ What was the net income

and the change in retained earnings for the period?

Net income was $$65,000$; the change in retained earnings was $$65,000.$

Net income was $$130,000$; the change in retained earnings was $$105,000.$

Net income was $$130,000$; the change in retained earnings was $$65,000.$

Net income was $$65,000$; the change in retained earnings was $$55,000.$

None of the above.