Problem A)

The Total assets and liabilities of Robot Company at January 1 and December 31, 2014, are presented below.

January 1 December 31

Assets $76,000 $112,000

Liabilities 26,000 28,800

Determine the amount of net income or loss for 2014, applying each of the following assumptions concerning the additional issuance of stock and dividends paid by the firm. Each case is independent of the others.

Dividends of $10,800 were paid, and no additional stock was issued during the year.

Additional stock was issued for $4,800, and no dividends were paid during the year.

Additional stock was issued for $62,000, and dividends of $15,600 were paid during the year.