precision camera services started the year with total assets of $130,000 and total liabilities of $60,000…

precision camera services started the year with total assets of $130,000 and total liabilities of $60,000. the revenues and the expenses for the year amounted to $140,000 and $50,000, respectively. during the year, the company did not issue any common stock, but it distributed dividends of $70,000. what is the amount of stockholders equity at the end of the year?\n\na. $70,000\nb. $90,000\nc. $50,000\nd. $140,000

precision camera services started the year with total assets of $130,000 and total liabilities of $60,000. the revenues and the expenses for the year amounted to $140,000 and $50,000, respectively. during the year, the company did not issue any common stock, but it distributed dividends of $70,000. what is the amount of stockholders equity at the end of the year?\n\na. $70,000\nb. $90,000\nc. $50,000\nd. $140,000

Answer

Answer:

B. $90,000

Explanation:

Step1: Calculate beginning - equity

Beginning equity = Total assets - Total liabilities. So, beginning equity = $130000 - $60000=$70000$.

Step2: Calculate net income

Net income = Revenues - Expenses. So, net income = $140000 - $50000 = $90000$.

Step3: Calculate ending - equity

Ending equity=Beginning equity + Net income - Dividends. Substitute values: Ending equity = $70000+90000 - 70000=$90000$.