At the beginning of the year, paid-in capital was $164 and retained earnings was $94.During the year, the stockholders invested $48 and dividends of $12 were declared and paid.Retained earnings at the end of the year were $104. Net income for the year was:
A)$20
B)$22
C)$30
D)$40

Question

Quizplus · Accepted Answer

Net income = Beginning retained earnings + Net income - Dividends + Paid-in capital - Ending retained earnings= 94 + Net income - 12 + 48 - 104= Net income = 22

At the Beginning of the Year, Paid-In Capital Was $164