Reference no: EM13535322
Four different corporations, A, B, C, and D, show the same balance sheet data at the beginning and end of a year. These data, exclusive of the amount of stockholders' equity, are summarized as follows:
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Total
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Total
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Assets
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Liabilities
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Beginning of the year
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$525,000
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$220,000
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End of the year
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970,000
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425,000
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On the basis of the above data and the following additional information for the year, determine the net income (or loss) of each company for the year. (Suggestion: First determine the amount of increase or decrease in stockholders' equity during the year.)
Company A: No additional capital stock was issued, and no dividends were paid.
Company B: No additional capital stock was issued, but dividends of $50,000 were paid.
Company C: Capital stock of $75,000 was issued, but no dividends were paid.
Company D: Capital stock of $75,000 was issued, and dividends of $50,000 were paid.