A Company Had the Following Assets and Liabilities at the Beginning

question 85

Multiple Choice

A company had the following assets and liabilities at the beginning and end of the current year: $\begin{array}{lrr} & \text { Assets } & \text { Liabilities } \\\text { Beginning of year } & \$ 428,000 & \$ 176,000 \\\text { End of the year } & 490,000 & 150,000\end{array}$ Common stock in the amount of $30,000 was issued and dividends of $10,000 were paid during the year.What is the amount of net income for the year?

• A)$88,000.
• B)$68,000.
• C)$48,000.
• D)$108,000.

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Definitions:

Rudolf II

A Holy Roman Emperor known for his patronage of arts and sciences, and his role in the religious conflicts of his time, reign from 1576 to 1612.

Holy Roman Emperor

The ruler of the Holy Roman Empire, a political entity in Central Europe from the 9th to the 19th century, not directly analogous to the ancient Roman Empire.

Industrial Revolution

A period of major industrialization from the late 18th to mid-19th century that transformed mainly agrarian, rural societies in Europe and America into industrialized, urban ones.

Inflation

The rate at which the general level of prices for goods and services is rising, eroding purchasing power.