Megn Corporation had beginning total liabilities of $40,OOO and ending total liabilities of $60,000. The beginning balance

in stockholders' equity was $50,000. During the year, total assets increased $35,000. In addition, capital stock of $1O,000

was issued and dividends of $5,000 were declared and paid. How much was Mega's net income for the year? HINT: Use

changes in the accounting equation to answer this problem.

a. $20,000

b. $15,000

c. $10,000

d. $ :5,000

e. None of these

How the answer is $10,000. Please explain

Thank you