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:

Non-Bonding Electrons

Non-bonding electrons, also known as lone pairs, are valence electrons on an atom that are not involved in chemical bonding and significantly influence molecular shape and polarity.

Formal Charge

Formal charge is a concept in chemistry that represents the charge assigned to an atom in a molecule, assuming that electrons in chemical bonds are shared equally between atoms.

Non-Bonding Electrons

Electrons in an atom or molecule that are not involved in chemical bonding and occupy the outermost shells or subshells.

Formal Charge

A theoretical charge assigned to an atom in a molecule representing the electron count difference from its neutral state.