Assume that Pacer Company's paid-in capital at the beginning of the period was $475,000.Pacer Company's total revenues and total expenses were $890,000 and $550,000, respectively.A dividend of $70,000 was declared and paid to shareholders.Pacer Company's net income is_____.
A)$340,000
B)$250,000
C)$390,000
D)$405,000

Question

Quizplus · Accepted Answer

Net income is calculated as total revenues minus total expenses. Therefore, Pacer Company's net income is $890,000 - $550,000 = $340,000.

Assume That Pacer Company's Paid-In Capital at the Beginning of the Period