Acme Company had equity of $55,000 at the end of the current year.During the year the company had a $2,000 net loss and investments by owners in exchange for stock of $7,000.Compute equity as of the beginning of the year.
A)$5,000
B)$46,000
C)$50,000
D)$52,000
E)$64,000

Question

Quizplus · Accepted Answer

Equity at beginning of the year + Investments by owners = Equity at end of the year - Net loss
Equity at beginning of the year + $7,000 = $55,000 - $2,000
Equity at beginning of the year = $50,000

Acme Company Had Equity of $55,000 at the End of the Current