Reference no: EM132643197

The total assets and the total liabilities of a business at the beginning and at the end of the year appear below. During the year, $50,000 of dividends were paid and $35,000 cash received in exchange for common stock.

Assets for beginning of year : $295,000
Assets at end of year: $355,000

Liabilities for beginning of year: $190,000
Liabilities at end of year: $220,000

Problem 1: The amount of net income for the year was

Option 1: $45,000

Option 2: $40,000

Option 3: $85,000

Option 4: $135,000