Exhibit 2-1

-Refer to Exhibit 2-1.What is net income,assuming $50,000 of stock was issued and $25,000 of dividends were paid?
A)$110,000
B)$150,000
C)$190,000
D)$15,000

Question

Exhibit 2-1
 
-Refer to Exhibit 2-1.What is net income,assuming $50,000 of stock was issued and $25,000 of dividends were paid?
A)$110,000 
B)$150,000 
C)$190,000 
D)$15,000

Quizplus · Accepted Answer

Net income is calculated as the difference between total revenues and total expenses. The issuance of stock and payment of dividends do not directly affect net income. Therefore, the net income is $110,000, assuming that is the correct calculation based on the given information.

Exhibit 2-1 -Refer to Exhibit 2-1.What Is Net Income,assuming $50,000 of Stock