On January 1, Total Assets and Liabilities Were $30,000 and $12,000

question 51

Essay

On January 1, total assets and liabilities were $30,000 and $12,000, respectively. On December 31, total assets and liabilities were $28,000 and $20,000, respectively. During the year, $7,000 of dividends were declared and paid and no stock was purchased or issued. Calculate the amount of net income or loss for the year.

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Definitions:

Glass-Steagall Act

A U.S. law enacted in 1933 during the Great Depression that separated commercial banking from investment banking to reduce financial risk and prevent future bank failures.

Stock Markets

Marketplaces where securities, such as stocks and bonds, are bought and sold, determining the value of publicly traded companies.

George H. W. Bush

The 41st President of the United States (1989-1993) known for leading the country during the end of the Cold War and the Gulf War.

Foreign Policy Action

Actions taken by a nation's government to achieve its objectives in its relations with other countries.