Exhibit 2-1 Refer to Exhibit 2-1

question 51

Multiple Choice

Exhibit 2-1 $\begin{array}{lll}\text { Total Liabilities } & \text { Total Assets } & \\\$ 60,000 & \$ 100,000 & \text { Beginning of the year } \\\$ 325,000 & \$ 500,000 & \text { End of the year }\end{array}$

Refer to Exhibit 2-1. What is net income, assuming $50,000 of stock was issued and no dividends were paid?

• A) $110,000
• B) $85,000
• C) $70,000
• D) $200,000

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Definitions:

Ackerman Arm

A component in the steering mechanism of a vehicle that helps maintain optimal angles of the wheels for better control and handling.

Cross Tube Assembly

A component in vehicle suspension systems that connects and provides support across other structural parts.

Ball Sockets

A type of bearing that allows for rotational movement in all directions, commonly used in automotive steering systems.

Ackerman Arms

Components of the steering mechanism that help achieve different turning radii for the inner and outer wheels, improving cornering.