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Amount of profit retained in the firm

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If a firm has $50,000 in profit and pays out one-half to the owners of the company, the amount of profit retained in the firm would show up as?

Decrease in owner's equity
Increase in owner's equity
Increase in retained income

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This solution is comprised of a detailed explanation to answer how the amount of profit retained in the firm would show up on the balance sheet.

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If a firm has $50,000 in profit and pays out one-half to the ...

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