Question 4 (6 marks)

At the beginning of 2020, Tucker Corporation had assets of $350,000 and liabilities of $175,000. At the end of 2020, Tucker had assets of $300,000 and liabilities of $70,000. Its shareholders equity consisted of common shares and retained earnings.

Required:

a) Compute the change in Tuckers shareholders equity during 2020.

Change in Tuckers shareholders equity during 2020: _______________

b) Assume that Tucker issued no additional common shares and declared no dividends, determine Tuckers net income or net loss for 2020.

Net income or (loss) for 2020: _________________________

c) Assume that Tucker issued additional common shares for $40,000 cash and declared dividends totaling $22,000, determine Tuckers net income or net loss for 2020.

Net income or (loss) for 2020: _________________________