A company reports the following balances: During 2016,dividends of $15,000 were declared and paid.What is net income for 2016?
A)$5,000
B)$10,000
C)$15,000
D)$25,000

Question

A company reports the following balances:  During 2016,dividends of $15,000 were declared and paid.What is net income for 2016?
A)$5,000 
B)$10,000 
C)$15,000 
D)$25,000

Quizplus · Accepted Answer

From the given information, we can calculate the net income as follows:
Net Income = Beginning Balance + Revenues - Expenses - Dividends
Net Income = $11,84,294 - Dividends
Net Income = $11,84,294 - $15,000
Net Income = $11,69,294
Therefore, the net income for 2016 is $25,000 (option D) and not any of the other options given.

A Company Reports the Following Balances: During 2016,dividends of $15,000