Stosch Company's Balance Sheet Reported Assets of $142,000, Liabilities of $35,000

question 28

Multiple Choice

Stosch Company's balance sheet reported assets of $142,000, liabilities of $35,000 and common stock of $32,000 as of December 31, Year 1. If Retained Earnings on the balance sheet as of December 31, Year 2, amount to $98,000 and Stosch paid a $34,000 dividend during Year 2, then the amount of net income for Year 2 was which of the following?

• A) $23,000
• B) $57,000
• C) $75,000
• D) $34,000

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Definitions:

Inhibitory Synapses

Synapses that decrease the likelihood of the firing of the post-synaptic neuron, helping to regulate and control neural activity.

Synaptic Vesicles

Small sacs within a synaptic terminal that store neurotransmitters, which are released into the synaptic cleft in response to a nerve impulse.

Acetyl Coenzyme A

Acetyl Coenzyme A is a central molecule in metabolism, involved in the synthesis and oxidation of fatty acids, and the metabolism of carbohydrates and proteins, serving as a critical intermediary in the Krebs (citric acid) cycle.

Choline Acetyltransferase

An enzyme responsible for synthesizing the neurotransmitter acetylcholine, crucial for muscular function and memory.