The Total Assets and the Total Liabilities of Paragon Services

question 140

Multiple Choice

The total assets and the total liabilities of Paragon Services are shown below.During the year,no additional capital contributions were made,and the business earned net income of $50,000. $\begin{array}{|l|r|r|} \hline& \text { Assets } & \text { Liabilities } \\\hline \text { Beginning of year } & \$ 395,000 & \$ 290,000 \\\hline \text { End of year } & 455,000 & 320,000\\\hline\end{array}$ What was the amount of drawings taken during the year?

• A) $85,000
• B) $40,000
• C) $45,000
• D) $20,000

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Definitions:

Foreign Goods

Products or services that are produced in one country and sold in another, outside the country of origin.