At December 31, Year 1, Eagle Corp. reported $1,750,000 of appropriated retained earnings for the
construction of a new office building, which was completed in Year 2 at a total cost of $1,500,000.
In Year 2, Eagle appropriated $1,200,000 of retained earnings for the construction of a new plant.
Also, $2,000,000 of cash was restricted for the retirement of bonds due in Year 3. In its Year 2
balance sheet, Eagle should report what amount of appropriated retained earnings?
a. $1,200,000 b. $1,450,000 c. $2,950,000 d. $3,200,000