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York Casting Services Started the Year with Total Assets of $120,000

question 72

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York Casting Services started the year with total assets of $120,000 and total liabilities of $60,000.The revenues and the expenses for the year amounted to $150,000 and $50,000,respectively.During the year,the owner did not make any additional contributions,but had withdrawals of $75,000.Calculate the amount of increase or decrease in owner's equity for the year.


Definitions:

Noncontrolling Interest

A minority stake in a corporation, representing less than half of the voting shares, and therefore not having control over the company.

Initial Value Method

An accounting practice in which an investment is recorded at its purchase cost without adjusting for market variations.

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