During 2015,Trinder Corporation had an increase in total assets of $80,000 and an increase in total liabilities of $60,000.Assuming that capital stock increased by $8,000 and no dividends were paid,calculate Trinder's net income or net loss for 2015.

Question

Quizplus · Accepted Answer

The increase in equity is the increase in assets minus the increase in liabilities, which is $80,000 - $60,000 = $20,000. Since capital stock increased by $8,000, the net income must be $20,000 - $8,000 = $12,000.

During 2015,Trinder Corporation Had an Increase in Total Assets of $80,000