The balance of stockholders’ equity at the beginning of the

The balance of stockholders’ equity at the beginning of the year and the end of the year was $50,000 and $60,000, respectively. The company issued no common stock during the year. Dividends were $20,000. What was the net income or loss for the year?

A) Net income of $80,000
B) Net loss of $80,000
C) Net loss of $30,000
D) Net income of $30,000

ANSWER

D .Stockholders’ equity at the end of the year $60,000
Add: Dividends 20,000
$80,000
Less: Stockholders’ equity at the beginning of the year (50,000 )
Net income $30,000