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Crawford Company started the year with $30,000 in its Common Stock account and a credit balance in Retained Earnings of $12,000.

. Crawford Company started the year with $30,000 in its Common Stock account and a credit balance in Retained Earnings of $12,000. During the year, the company earned net income of $24,000 and declared and paid $10,000 of dividends. In addition, the company sold additional common stock amounting to $14,000. As a result, the amount of its retained earnings at the end of the year would be:

a. $70,000

b. $26,000

c. $56,000

d. $40,000

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