Donaldson's Delivery Company Began Operations on January 1,2019 What Is the Net Income for the Year Ended December

question 216

Multiple Choice

Donaldson's Delivery Company began operations on January 1,2019.The following Trial Balance was prepared on December 31,2019. Donaldson's Delivery Service Company
Trial Balance
December 31,2019
$$\begin{array} { l c c } \text { Accuunt Title } & \text { Debit } & \text { Credit } \\\text { Cash } & \$ 15,500 & \\\text { Accounts Receivable } & 8,000 & \\\text { Prepaid Rent } & 2,400 & \\\text { Office Supplies } & 1,400 & \\\text { Larnd } & 25,000 & \\\text { Building } & 32,000 & \\\text { Equipment } & 23,000 & \\\text { Accounts Payable } & & \$ 10,400 \\\text { Unearned Reveruse } & & 2,500 \\\text { Notes Payble } & & 20,000 \\\text { Donaldson, Capital } & & 57,000 \\\text { Donaldson, Withdrawals } & 6,400 & \\\text { Service Reveriue } & & 83,900 \\\text { Salaries Expense } & 28,000 & \\\text { Rent Expense } & 18,000 & \\\text { Truck Expense } & 12,400 & \\\text { Office Expense } & \underline{1,700 } &\underline{\quad\quad} \\\text { Total } & \underline{\$173,800}& \underline{\$173,800} \\\end{array}$$ What is the net income for the year ended December 31,2019?

• A) $17,400
• B) $23,800
• C) $26,300
• D) $74,400

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Definitions:

Expected Return

This is the anticipated value or profit that an investment will generate over a certain period, factoring in the probabilities of various outcomes.

Risk-free Rate

The return on investment considered completely free of risk, such as the return on government bonds in stable financial systems.

Economic Factors

Various elements such as inflation, unemployment rates, and GDP growth that influence the economic environment.

Diversified Portfolios

Investment strategies that spread investments across various assets to minimize risks associated with any single investment.