Reference no: EM132835816

Problem 1: For the current accounting year, the beginning and ending total liabilities were $15,000 and $31,000, respectively. At year-end, the owner's equity amounted to $29,000, and total assets were $21,000 larger than at the beginning of the year. If the common stock sold to owners during the year amounted to $5,000 and dividends paid to owners totaled $2,000, net income or net loss for the year was:

A. $10,000 net loss

B. $ 5,000 net income

C. $ 2,000 net income

D. $10,000 net income

E. none of the above are correct