Assume that as of January 1, 20Y8, Sylvester Consulting has total assets of $500,000 and total liabilities

Question:

Assume that as of January 1, 20Y8, Sylvester Consulting has total assets of $500,000 and total liabilities of $150,000. As of December 31, 20Y8, Sylvester has total liabilities of $200,000 and total stockholders’ equity of $400,000.
(a) What was Sylvester’s stockholders’ equity as of January 1, 20Y8?
(b) Assume that Sylvester did not pay any dividends during 20Y8. What was the amount of net income for 20Y8?