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question: Why is retained earnings on December 31, 2018, equalto $80,000 in all three cases despite the reporting of differentamounts of net income each year?Is it A,B, or C?A: Net income over sufficiently long time periods equals cashinflows minus cash outflows. Walmart acquired the land in 2016 for$100,000 and sold it for $180,000 in 2018. Thus, the total effecton net income through the realization of the increase in the vaB: Net income over sufficiently long time periods equals cashinflows plus cash outflows. Walmart acquired the land in 2016 for$100,000 and sold it for $180,000 in 2018. Thus, the total effecton net income through the realization of the increase in thevalC: Net income over sufficiently long time periods equals cashinflows minus cash outflows. Walmart acquired the land in 2016 for$100,000 and sold it for $180,000 in 2018. Thus, the total effecton net income through the realization of the increase in the va