Answer:
$ 52,500
Explanation:
Given data:
Total reported retained earnings in 2010= $ 675,000
Net income during the year = $ 172,500
Net retained earning of the previous year i.e 2009 = $ 555,000
now,
Dividends paid by the Heaton during 2010 = ( The retained earnings of the year 2009) - ( the retained earnings of 2010 ) + ( the net income of 2010 )
on substituting the values, we get
Dividends paid by the Heaton during 2010 = $ 555,000 - $ 675,000 + $ 172,500 = $ 52,500
Hence, the dividends paid during 2010 was $ 52,500
