The net income of Avid Camera Services is $20,000. The begin

The net income of Avid Camera Services is $20,000. The beginning and ending stockholders’ equity balances were $36,000 and $54,000, respectively. The company issued no common stock. Calculate the amount of dividends.

A) $12,000
B) $2,000
C) $16,000
D) $15,000

ANSWER

B .Stockholders’ Equity Beginning Balance $36,000
Add: Net Income 20,000
Less: Stockholders’ Equity Ending Balance 54,000
Dividends $2,000