Based on the information given the amount of the retained earning is $2,600,000.
Retained earning
Using this formula
Retained earning=Total assets - Common stock - Liabilities
Where:
Total assets=$8,000,000
Common stock=$4,200,000
Liabilities=$1,200,000
Let plug in the formula
Retained earning=$8,000,000-$4,200,000-$1,200,000
Retained earning=$2,600,000
Inconclusion the amount of the retained earning is $2,600,000.
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