Lankston Company Began the Year by Issuing $90,000 of Common

question 165

Multiple Choice

Lankston Company began the year by issuing $90,000 of common stock for cash. The company recorded revenues of $825,000, expenses of $720,000, and paid dividends of $45,000. What was Lankston's net income for the year?

• A) $60,000
• B) $150,000
• C) $105,000
• D) $195,000

---

Definitions:

Testes

The male reproductive glands that produce sperm and hormones, such as testosterone.

Fight-or-Flight Response

An acute stress response involving physiological changes that prepare the body to either confront or flee from a threat.

Uterus

A major female reproductive organ where the development of the embryo and fetus occurs during pregnancy.

Ovary

The female reproductive organ in flowers and certain animals, including humans, where eggs or ovules are produced.