Mark Davidson is the sole owner and operator of Sunrise Enterprises. As of the end of its accounting period, December 31, Year 1, Sunrise Enterprises had assets of $1,200,000 and liabilities of $450,000. During Year 2, Davidson invested an additional $80,000 and withdrew $40,000 from the business. If, as of December 31, Year 2, assets were $1,310,000 and liabilities were $470,000, what is the amount of net income for Year 2? a) $60,000 b) $62,000 c) $64,000 d) $66,000 e) $68,000
Mark Davidson is the sole owner and operator of Sunrise Enterprises. As of the end of its accounting period, December 31, Year 1, Sunrise Enterprises had assets of $1,200,000 and liabilities of $450,000. During Year 2, Davidson invested an additional $80,000 and withdrew $40,000 from the business. If, as of December 31, Year 2, assets were $1,310,000 and liabilities were $470,000, what is the amount of net income for Year 2? a) $60,000 b) $62,000 c) $64,000 d) $66,000 e) $68,000
Chapter20: Corporations And Parterships
Section: Chapter Questions
Problem 51P
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Transcribed Image Text:Mark Davidson is the sole owner and operator of Sunrise Enterprises. As
of the end of its accounting period, December 31, Year 1, Sunrise
Enterprises had assets of $1,200,000 and liabilities of $450,000.
During Year 2, Davidson invested an additional $80,000 and withdrew
$40,000 from the business.
If, as of December 31, Year 2, assets were $1,310,000 and liabilities were
$470,000, what is the amount of net income for Year 2?
a) $60,000
b) $62,000
c) $64,000
d) $66,000
e) $68,000
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