Cragmont has beginning equity of $277,000,net income of $63,000,dividends of $25,000 and no additional investments by stockholders during the period.Its ending equity is:
A)$365,000.
B)$239,000.
C)$189,000.
D)$315,000.
E)$277,000.

Question

Quizplus · Accepted Answer

Ending equity is calculated by starting with the beginning equity, adding net income, and subtracting dividends. Therefore, $277,000 + $63,000 - $25,000 = $315,000.

Cragmont Has Beginning Equity of $277,000,net Income of $63,000,dividends of $25,000