Fran Company has beginning equity of $300,000, net income of $50,000, dividends of $30,000 and investments by owners in exchange for stock of $10,000. Its ending equity is:
A) $223,000
B) $240,000
C) $268,000
D) $330,000

Question

Quizplus · Accepted Answer

Ending equity is calculated by adding net income and investments by owners to the beginning equity, then subtracting dividends. So, $300,000 + $50,000 + $10,000 - $30,000 = $330,000.

Fran Company Has Beginning Equity of $300,000, Net Income of $50,000