Answer:
$2550
Step-by-step explanation:
Calculation to determine the amount of retained earnings at the beginning of Year 2
Using this formula
Beginning Retained Earnings + Revenue ā Expenses ā Dividends = Ending Retained Earnings
Let plug in the formula
Beginning Retained Earnings + $3,200 ā $1,700 ā $1,100 = $2950
Beginning Retained Earnings= $2,950-$400
Beginning Retained Earnings = $2,550
Therefore the amount of retained earnings at the beginning of Year 2 is $2550