The owner's equity in a business amounted to $56,000 at the beginning of the year and $100,000 at the end of the year. The owner had made no additional investments and had withdrawn $19,000 during the year. The net income for the year amounted to

Question

Quizplus · Accepted Answer

The change in the owner's equity can be calculated as: 
Ending owner's equity - Beginning owner's equity = Net income - Withdrawals

Substituting the given values, we get: 
$100,000 - $56,000 = Net income - $19,000

Simplifying, we get: 
$44,000 = Net income - $19,000

Therefore, the net income for the year is: 
Net income = $44,000 + $19,000 = $63,000

Thus, the correct answer is choice C.

The Owner's Equity in a Business Amounted to $56,000 at the Beginning