De Franco Company reported an ending balance in its retained earnings account of $16,500 on...
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De Franco Company reported an ending balance in its retained earnings account of $16,500 on its December 31 2020 Statement of Financial Position. During 2020, De Franco had reported a net loss of $2,500 on its Income Statement. The company had also declared, but had not yet paid, a cash dividend of $1,000. In addition, during 2020 the company had issued additional common shares for $5,000, reported an actuarial gain of $4,000, net of tax, on remeasurement of its defined benefit pension plan, and had recorded the correction of a prior years' error, net of tax, in the amount of $500 (credit). Based upon the above information, the balance in its retained earnings account as at January 1 2020 must have been:
| a. | $19,500 |
| b. | $20,000 |
| c. | $20,500 |
| d. | None of the above |
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