Answer:
$42,500
Explanation:
Red carpet had retained earnings of $537,500 and a net income of $135,000
On the previous balance sheet the retained earnings that was reported was $445,000
The first step is to calculate the change in retained earnings
= $537,500-$445,000
= $92,500
Therefore the amount of dividend paid by the firm can be calculated as follows
=Net income-change in retained earnings
= $135,000-$92,500
= $42,500
Hence the dividend paid by the firm during 2019 is $42,500
