E1.10 (LO 5) Kinney A.S. had the following assets and liabilities on the dates indicated. Determine net income (or loss). December 31 Total Assets Total Liabilities 2019 $400,000 $250,000 2020 $460,000 $300,000 2021 $590,000 $400,000 Kinney began business on January 1, 2019, with an investment of $ 100,000. Instructions From an analysis of the change in equity during the year, compute the net income (or loss) for: a. 2019, assuming Kinney's paid $12,000 in dividends for the year. b. 2020, assuming shareholders made an additional investment of $34,000 and Kinney paid no divi- dends in 2020. c. 2021, assuming shareholders made an additional investment of $12,000 and Kinney paid dividends of $25,000 in 2021.EXERCISE 1.10 (a) Equity1 2131(19 (400,000 250,000} ............................... 150,000 Equity111.11 9 ........................................................................ 100,000 Increase in equity .................................................................. 50,000 Add: Dividends .................................................................... 12,000 Net income for 2019 ............................................................... 62 000 (b) Equity1251120 (460,000 300,000} ............................. 160,000 Equity111120see (a) ....................................................... 150,000 Increase in equity ................................................................ 10,000 Less: Additional investment .............................................. 34,000 Net loss for 2020 .................................................................. 24,000} (c) Equity12131121 (590,000 400,000) ............................. 190,000 Equity111121see (b) ....................................................... 160,000 Increase in equity ................................................................ 30,000 Less: Additional investment .............................................. 12,000 18,000 Add: Dividends .................................................................. 25,000 Net income for 2021 ........................................ . ..................... 43,000