Changes in Owner’s Equity The following amounts are available from the records of Coaches and Carriages Inc. at the end of the years indicated:

Required 1. Compute the changes in Coaches and Carriages’ owners’ equity during 2007 and 2008.
2. Compute the amount of Coaches and Carriages’ net income (or loss) for 2007 assuming that no dividends were paid during the year.
3. Compute the amount of Coaches and Carriages’ net income (or loss) for 2008 assuming that dividends paid during the year amounted to $10,000.

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December 31 Total Assets Total Liabilities 2006 2007 2008 $ 25,000 79,000 184,000 $ 12,000 67,000 137,000