Savvy Sightseeing had beginning equity of $72,000; revenues of $90,000,expenses of $65,000,and dividends to stockholders of $9,000.There were no stockholder investments during the year.Calculate ending equity.
A)$88,000.
B)$25,000.
C)$97,000.
D)$38,000.
E)$47,000.

Question

Quizplus · Accepted Answer

Ending equity is calculated by starting with the beginning equity, adding revenues, subtracting expenses, and subtracting dividends. So, $72,000 + $90,000 - $65,000 - $9,000 = $88,000.

Savvy Sightseeing Had Beginning Equity of $72,000; Revenues of $90,000,expenses