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8.5 At the beginning of the current fiscal year, the balance sheet of Hughey, Inc., showed stockholders' equity of $520,000. During the year, liabilities increased
8.5
At the beginning of the current fiscal year, the balance sheet of Hughey, Inc., showed stockholders' equity of $520,000. During the year, liabilities increased by $21, 000 to $234,000; paid-in capital in-creased by $40,000 to $175,000; and assets increased by $260,000. Dividends declared and paid during the year were $55,000.
Calculate net income or loss for the year. (Hint: Set up the accounting equation for beginning balances. Changes during the year, and ending balances; then solved for missing amounts.)
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