Calculate the profit for the year if capital at the beginning is $35,000,capital at the end is $40,000 and during the year the owner withdrew $15,000.
A) $5,000.
B) $15,000.
C) $10,000.
D) $20,000.

Question

Quizplus · Accepted Answer

The profit for the year can be calculated by adding the owner's withdrawals to the increase in capital, then subtracting the initial capital. The increase in capital is $40,000 - $35,000 = $5,000. Adding the withdrawals of $15,000 gives $20,000.

Calculate the Profit for the Year If Capital at the Beginning