Really confused by this one. Not sure where I’m going wrong. Thx so much! The statement of retained earnings for Redwood Systems Ltd. shows a…

Really confused by this one. Not sure where I’m going wrong. Thx so much!

The statement of retained earnings for Redwood Systems Ltd. shows a retained earnings balance of $300 million on December 31. During the year, Redwood generated net income of $60 million and paid dividends of $20 million to its stockholders. What was the beginning balance of retained earnings at the start of this year?

$300 million

$260 million

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