1. Karen Nguyen owns and operates De Anza Consulting Company. Recently, Nguyen withdrew $10,000 from De Anza Consulting, and she contributed $6,000, in her name, to the American Red Cross. The contribution of the $6,000 should be recorded on the accounting records of which of the following entities? a. Karen Nguyen's personal records, De Anza Consulting, and the American Red Cross b. Karen Nguyen's personal records and De Anza Consulting c. De Anza Consulting and the American Red Cross d. Karen Nguyen's personal records and the American Red Cross

2. Harry Potter is the sole owner and operator of Warthog Company. As of the end of its accounting period, December 31, Year 1, Warthog Company has assets of $940,000 and liabilities of $300,000. During Year 2, Potter invested an additional $73,000 and withdrew $33,000 from the business. What is the amount of net income during Year 2, assuming that as of December 31, Year 2, assets were $995,000 and liabilities were $270,000? a. $50,000 b. $106,000 c. $45,000 d. $370,000

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