Calculate the profit for the year if capital at the beginning is $35,000, capital at the end is $40,000 and during the year the owner withdrew $15,000.
A) $20,000
B) $15,000
C) $10,000
D) $5,000

Question

Quizplus · Accepted Answer

The profit for the year can be calculated by adding the owner's withdrawals to the capital at the end and then subtracting the capital at the beginning: $40,000 + $15,000 - $35,000 = $20,000.

Calculate the Profit for the Year If Capital at the Beginning