Based on the activities above,stockholders' equity of the Maverick Law Firm in 2013 will be
A)increased by $20,000.
B)decreased by $5,000.
C)increased by $17,000.
D)decreased by $2,000.

Question

Quizplus · Accepted Answer

The net income of $50,000 and the issuance of additional shares for $2,000 will increase the stockholders' equity by $52,000. The declaration and payment of dividends will decrease the stockholders' equity by $35,000. Therefore, the overall increase in stockholders' equity is $17,000 ($52,000 - $35,000).

Based on the Activities Above,stockholders' Equity of the Maverick Law