Answer: $14.518 million
Explanation:
Based on he information given, we have to calculate the owner's equity first which will be:
= Assets - Liabilities
= $41.309 million - $25.521 million
= $15.788 million
Since Owners equity is the addition of the total common stock and the retained earnings. Therefore, retained earnings will be:
= Owners equity - Total common stock
= $15.788 million - $1.270 million
= $14.518 million
The retained earning is $14.518 million
