Paulson Company had the following on the dates indicated:12/31/18 12/31/17Total assetsTotal liabilities$ 530,00036,000$ 350,00023,000Paulson had no stock transactions in 2018, so the change in stockholders’ equity for 2018 wasdue to net income and dividends. If dividends were $75,000, how much was Paulson’s netincome for 2018? Use the accounting equation and the statement of retained earnings.a. $92,000b. $242,000c. $167,000d. $317,000

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Paulson Company had the following on the dates indicated:
12/31/18 12/31/17
Total assets
Total liabilities
$ 530,000
36,000
$ 350,000
23,000
Paulson had no stock transactions in 2018, so the change in stockholders’ equity for 2018 was
due to net income and dividends. If dividends were $75,000, how much was Paulson’s net
income for 2018? Use the accounting equation and the statement of retained earnings.
a. $92,000
b. $242,000
c. $167,000
d. $317,000

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