Answer:
A. 10,000
Explanation:
The dividends declared during the company's recent year can be viewed from the perspective of changes in retained earnings since the end of the year retained earnings are a function of the beginning of the year retained earnings, net income and dividends as captured in the formula below:
closing retained earnings=beginning retained earnings+net income-dividends
closing retained earnings=$91,000.
beginning retained earnings=$75,000
net income=$26,000
dividends=the unknown
$91,000=$75,000+$26,000-dividends
dividends=$75,000+$26,000-$91,000
dividends=$10,000