Allen Marks Is the Sole Stockholder of Great Marks Company

question 151

Multiple Choice

Allen Marks is the sole stockholder of Great Marks Company. As of the end of its accounting period, December 31, 2011, Great Marks Company has assets of $940,000 and liabilities of $300,000. During 2012, Allen Marks purchased an additional $65,000 of capital stock and received $45,000 in cash dividends from the business. What is the amount of net income during 2012, assuming that as of December 31, 2012, assets were $995,000, and liabilities were $270,000?

• A) $ 65,000
• B) $ 50,000
• C) $105,000
• D) $370,000

---

Definitions:

United States

A country located in North America, consisting of 50 states, a federal district, five territories, and various possessions.

Puerto Rico

A Caribbean island and unincorporated territory of the United States, with a rich cultural heritage and diverse ecosystem.

Japan

An island country located in East Asia, known for its rich history, cultural heritage, technological advancements, and economic power.

Physical Control

The ability to maintain influence over one's physical actions and environment, often used in the context of health or personal discipline.