Determine daiichis net income or loss for the year

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Owner's equity and the Accounting equation

Daiichi Company's total assets and liabilities at the beginning and end of the year follow.


Assets

Liabilities

 Beginning of the year

$175,000

$  68,750

End of the year

275,000

162,500

Determine Daiichi's net income or loss for the year under each of the following alternatives:

1. The owner made no investments in or withdrawals from the business during the year.

2. The owner made no investments in the business but withdrew $27,500 during the year.

3. The owner invested $16,250 in the business but made no withdrawals during the year.

4. The owner invested $12,500 in the business and withdrew $27,500 during the year.

Reference no: EM13884499

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