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Ace Company's retained earnings account on 1.1.11 was a debi

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6. Ace Company's retained earnings account on 1.1.11 was a debit balance of $10,000. During 2012, the company had a net income of $50,000. The 1.1.12 balance of the account was $20,000. What amount of cash dividends was declared during the year?

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The solution determines what amount of cash dividends was declared during the year.

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