Melrose Corporation began 2025 with $16,000 in stockholders' equity. Of this amount, $10,000 was in common stock, and there were no changes in the common stock account during 2025. At December 31, 2025, Melrose had $18,500 in stockholders' equity. Melrose paid out $6,000 in dividends during the year. How much was its net income in 2025? a. $8,500 b. $18,500 c. $2,500 d. $6,000 e. None of the above

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 18E: Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares...
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How much was it's net income in 2025 on this accounting question?

Melrose Corporation began 2025 with $16,000 in
stockholders' equity. Of this amount, $10,000 was in
common stock, and there were no changes in the common
stock account during 2025. At December 31, 2025, Melrose
had $18,500 in stockholders' equity. Melrose paid out $6,000
in dividends during the year. How much was its net income
in 2025?
a. $8,500
b. $18,500
c. $2,500
d. $6,000
e. None of the above
Transcribed Image Text:Melrose Corporation began 2025 with $16,000 in stockholders' equity. Of this amount, $10,000 was in common stock, and there were no changes in the common stock account during 2025. At December 31, 2025, Melrose had $18,500 in stockholders' equity. Melrose paid out $6,000 in dividends during the year. How much was its net income in 2025? a. $8,500 b. $18,500 c. $2,500 d. $6,000 e. None of the above
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