Following Are the Total Assets and Liabilities at the Beginning

question 71

Essay

Following are the total assets and liabilities at the beginning and end of the year for Maren Corporation:
$$\begin{array} { | l | r | r | } \hline & \text { Assets } & \text { Liabilities } \\\hline \text { Bepinging of the year } & \$ 70,000 & \$ 45,000 \\\hline \text { End of the year } & 130,000 & 40,000 \\\hline\end{array}$$ Determine the net income or loss for the year in each of the following situations:
a. The stockholders made no investments in the business and no dividends were paid during the year.
b. The stockholders made an investment of $20,000 and a dividend of $12,000 was paid during the year.

---

Definitions:

Equitable Remedies

Judicial awards made to fairly resolve a legal issue or dispute, including injunctions, specific performance, and rescission, based on principles of equity rather than fixed law.

Types

Varieties or categories of objects, individuals, or concepts that share common characteristics.

Distinguish

To distinguish means to recognize or treat (someone or something) as different from other people or things.

Injunction

A judicial order requiring a person or entity to do or cease doing a specific action.