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The owner's equity in a business amounted to $52,000 at the beginning of the year and $100,000 at the end of the year. The owner had made no additional investments and had withdrawn $19,000 during the year. The net income for the year amounted to _______.

A. $81,000
B. $67,000
C. $48,000
D. $171,000

Respuesta :

Answer:

B. $67,000

Explanation:

The formula to compute the net income for the year is shown below:

As we know that

Ending balance in owners equity = Beginning balance in owners equity + net income - withdrawn amount    

$100,000 = $52,000 + Net income - $19,000

$100,000 = $33,000 + Net income

So, the net income for the year is

= $100,000 - $33,000

= $67,000

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