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A company had shareholders' equity on the balance sheet of $2,450,000 at the end of 2019. During 2020 the company had net income of $104,000
A company had shareholders' equity on the balance sheet of $2,450,000 at the end of 2019. During 2020 the company had net income of $104,000 and pays dividends to shareholders of half of its net income. In addition, it issued new common stock valued at $90,000 and 20 year bonds at par ($400,000). The value of shareholders equity at the end of 2020 is:
A. $2,502,000 B. $2,592,000 C. $729,500 D. $2,992,000
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