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Question

Safari File Edit View History Bookmarks Window Help ? newconnec Disney ESPN Yahoo! gold-soul.la women's swi... shophearts iCloud Job Description Bing Yahoo Google Wikipedia Louie Company Has A Defined Benefit Pensi... Chapter 18 Quiz Ortega Inc. has a defined benefit pension Chapter 18 Quiz Help Save& ExitSubmit The changes in account balances for Elder Company for 2018 are as follows: Assets Conmon stock Liabilities Faid-in capital-excess of par $496,000 debit 238,000 credit 143,000 credit 21,000 credit Assuming the only changes in retained earnings in 2018 were for net income and a $63,000 dividend, what was net income for 2018? Multiple Choice $157.000 $94.000 $161,000 or 0 E Next > F3

Explanation / Answer

Answers

A

Assets

$                           496,000.00

1

Common Stock

$                           238,000.00

2

Liabilities

$                           143,000.00

3

PIC - Excess of Par

$                             21,000.00

B = 1+2+3

Total (excluding Retained Earnings)

$                           402,000.00

C = A - B

Retained Earnings 2018 ending balance

$                             94,000.00

A

Retained Earning balance

$                             94,000.00

B

Dividends

$                             63,000.00

C = A + B

Amount of Net Income in 2018

$                           157,000.00

Correct answer

Option #1: $ 157,000

A

Assets

$                           496,000.00

1

Common Stock

$                           238,000.00

2

Liabilities

$                           143,000.00

3

PIC - Excess of Par

$                             21,000.00

B = 1+2+3

Total (excluding Retained Earnings)

$                           402,000.00

C = A - B

Retained Earnings 2018 ending balance

$                             94,000.00

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