Colorado Company has beginning equity of $900,000, net income of $150,000, dividends of $90,000 and investments by owners in exchange for stock of $30,000. Its ending equity is:
A) $669,000
B) $720,000
C) $804,000
D) $990,000

Question

Quizplus · Accepted Answer

Ending equity = Beginning equity + Net income (loss) - Dividends + Owner Investments
X = $900,000 + 150,000 - $90,000 + $30,000
X = $990,000

Colorado Company Has Beginning Equity of $900,000, Net Income of $150,000