I have an accounting problem that I need help with.?

Question:

At the beginning of 2006, X Company had assets of $300, liabilities of $150, and common stock of $50. During 2006 the company earned revenue of $400, incurred expenses of $250, and paid dividends of $100. All transactions were cash transactions.

2.The amount of retained earnings reported on the December 31, 2006 balance sheet would be
a.$100.
b.$250.
c.$650.
d.none of the above.

Answer:
d. none of the above

At start of 2006, assets - liabilities - common stock = retained earnings = $300 - $150 - $50 = $100. In 2006, the company did the following: revenue - expenses - dividends = retained earnings for the year = $400 - $250 - $100 = $50. Adding the year's retained earnings to the hisorical figure, they get $100 + $50 = $150 retained earnings as of 12-31-2006. That matches none of the choices a-c so the answer is d.

I have an accounting problem that I need help with.?

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