1.Presented below are data for Caracas Corp. 2017 2018 Assets, January 1 $6,840 ? Liabilities, January 1 ? $4,104 Stockholders' Equity, Jan. 1 ? $4,125 Dividends 855 969 Common Stock 912 975 Stockholders' Equity, Dec. 31 ? 3,399 Net Income 1,026 ? what is the solution for the Net income

2. At Ruth company, events and transactions during 2017 included the following. The tax rate for all items is 30%. 1. Depreciation for 2015 was found to be understated by $120,000. 2) A strike by the employees of a supplier resulted in a loss of $100,000. 3) The inventory at December 31, 2015 was stated by $160,000. 4) A disposal of a component of the business resulted in a $2,000,000.00 loss. The effect of these events and transactions on 2017 net income net tax would be A. ($70,500) B. ($1,470,000) C. ($1,554,000). D. ($1,666,000)