I want to show me the solution step by step especially how to compute the dividends in (a):

Q1 - The Lim Company had the following assets and liabilities on the dates indicated.

December 31 Total Assets Total Liabilities

2012 $530,000 $230,000

2013 $480,000 $210,000

2014 $590,000 $300,000

Lim began business on January 1, 2012, 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) 2012, assuming Lim paid dividends of $25,000 for the year.

(b) 2013, assuming Lim made an additional investment of $60,000 and paid no dividends in 2013.

(c) 2014, assuming Lim made an additional investment of $10,000 and paid dividends of $30,000 in 2014.