Winsome Inc. reports total assets and total liabilities of $225,000 and $100,000, respectively, at the end of its first year of business. The company earned $75,000 during the first year and distributed $30,000 in dividends. What was the corporation's contributed capital?
A) $125,000
B) $95,000
C) $80,000
D) $50,000

Question

Quizplus · Accepted Answer

Calculation: $225,000 - $100,000 = $125,000 $125,000 - ($75,000 - $30,000) = $80,000.