During 2019, Duncan Company's total assets increased $100,000, and total liabilities decreased $60,000. During the same year, the company's investors invested an additional $120,000 and the company paid dividends of $60,000.
What must have been the company's net income for 2019?
A) $100,000
B) $ 60,000
C) $ 80,000
D) $ 40,000

Question

Quizplus · Accepted Answer

Change in Assets = Change in Owner's Equity + Change in Liabilities
+$100,000 = X - $60,000
X = $160,000 = Change in Owner's Equity
Change in Owner's Equity = Change in owner's Investments + Net income - Dividends
$160,000 = $120,000 + X - $60,000
X = $160,000 - $120,000 + $60,000
X = $100,000

During 2019, Duncan Company's Total Assets Increased $100,000, and Total