Johnny's Car Repairs had total assets of $60,000 and total liabilities of $40,000 at the beginning of the year. During the year the business recorded $100,000 in revenues, $55,000 in expenses, and dividends of $10,000 were distributed. Profit reported by Johnny's Car Repairs for the year was:
A) $35,000
B) $45,000
C) $20,000
D) $90,000

Question

Quizplus · Accepted Answer

Profit is $45,000 ($100,000 - $55,000).

Johnny's Car Repairs Had Total Assets of $60,000 and Total