Zapper has beginning equity of $257,000, net income of $51,000, dividends of $40,000 and investments by stockholders of $6,000. Its ending equity is:
A)$223,000.
B)$240,000.
C)$268,000.
D)$274,000.
E)$208,000.

Question

Quizplus · Accepted Answer

Ending equity is calculated as beginning equity plus net income, plus investments by stockholders, minus dividends. So, $257,000 + $51,000 + $6,000 - $40,000 = $274,000.

Zapper Has Beginning Equity of $257,000, Net Income of $51,000