Answer:
Based on the information provided, we can calculate the changes in retained earnings for 2021 and 2022 as follows:
Retained earnings at 1/1/21 = $1,674 Net income for 2021 = $450 Common stock issued in 2021 = $330 Dividends declared and paid in 2021 = $170
Retained earnings at 12/31/21 = $1,674 + $450 - $330 - $170 = $1,624
Net income for 2022 = $210 Common stock issued in 2022 = $100 Dividends declared and paid in 2022 = $0
Retained earnings at 12/31/22 = $1,624 + $210 - $100 - $0 = $1,734
Therefore, the answer is option A: $2,664 does not match the calculated value of $1,734.
Step-by-step explanation: