On January 1, 2015, Cat Power Company Reported Stockholders' Equity

question 47

Multiple Choice

On January 1, 2015, Cat Power Company reported stockholders' equity of $705,000. During the year, the company paid dividends of $30,000. At December 31, 2015, the amount of stockholders' equity was $825,000. What amount of net income or net loss would the company report for 2015?

• A)Net loss of $30,000
• B)Net income of $90,000
• C)Net income of $120,000
• D)Net income of $150,000

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Definitions:

Neural Crest Cells

A group of embryonic cells found only in vertebrates; develop along the neural tube and migrate to various parts of the embryo where they give rise to (or influence the development of) nerves, head muscles, cranium, jaws, and other structures.

Embryonic Cells

Cells that originate from the embryo and have the potential to develop into any type of body cell, possessing high degrees of plasticity and the ability to proliferate.

Dipnoi

A group of fish also known as lungfish, characterized by their ability to breathe air using lungs in addition to gills.

Actinistia

A subclass of mostly extinct fish, with the modern coelacanths being the only living representatives, characterized by lobed fins.