A New Corporation Ended Its First Year of Operations with Assets

question 73

Multiple Choice

A new corporation ended its first year of operations with assets of $100,000,liabilities of $75,000,and contributed capital (common shares) of $10,000.What was the corporation's net income for the year?

• A) $25,000.
• B) $65,000.
• C) $90,000.
• D) $75,000.
• E) $15,000.

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Definitions:

Slope-forming Unit

A layer of rock or sediment that determines the slope or steepness of a geological formation due to differences in strength, erosion, or weathering rates.

Loose

Describes materials or objects that are not tightly fixed or compact, allowing for easy movement or separation.

Angular Rocks

Rocks that have sharp edges and points, typically resulting from mechanical weathering processes.

Steep Mountain Front

The abrupt transition from a relatively flat or gently sloping terrain to a steeply sloping mountain, creating a prominent landscape feature.