Abbie Marson is the sole owner and operator of Great Plains Company. As of the end of its accounting period, December 31, Year 1, Great Plains Company has assets of $940,000 and liabilities of $300,000. During Year 2, Marson invested an additional $73,000 and withdrew $33,000 from the business. What is the amount of net income during Year 2, assuming that as of December 31, Year 2, assets were $995,000, and liabilities were $270,000?

SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter18: Comparative Forms Of Doing Business
Section: Chapter Questions
Problem 18P
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Abbie Marson is the sole owner and operator of Great
Plains Company. As of the end of its accounting period,
December 31, Year 1, Great Plains Company has assets
of $940,000 and liabilities of $300,000. During Year 2,
Marson invested an additional $73,000 and withdrew
$33,000 from the business. What is the amount of net
income during Year 2, assuming that as of December 31,
Year 2, assets were $995,000, and liabilities were
$270,000?
Transcribed Image Text:Abbie Marson is the sole owner and operator of Great Plains Company. As of the end of its accounting period, December 31, Year 1, Great Plains Company has assets of $940,000 and liabilities of $300,000. During Year 2, Marson invested an additional $73,000 and withdrew $33,000 from the business. What is the amount of net income during Year 2, assuming that as of December 31, Year 2, assets were $995,000, and liabilities were $270,000?
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