On January 1, Year 2, Chavez Company had beginning balances as follows: During Year 2, Chavez paid dividends to its stockholders of $2,000. Given that ending retained earnings was $6,000, what was Chavez's net income for the Year 2?
A) $3,000
B) $5,000
C) $7,000
D) $2,000

Question

On January 1, Year 2, Chavez Company had beginning balances as follows:  During Year 2, Chavez paid dividends to its stockholders of $2,000. Given that ending retained earnings was $6,000, what was Chavez's net income for the Year 2?
A) $3,000 
B) $5,000 
C) $7,000 
D) $2,000

Quizplus · Accepted Answer

The Answer is A

On January 1, Year 2, Chavez Company Had Beginning Balances