Shep Companys records show the following information for the current year.

Beginning of yearEnd of yearTotal assets$ 56,000$ 87,500Total liabilities$ 25,000$ 38,000

Determine net income (loss) for each of the following separate situations.

Note: For all requirements, losses should be entered with a minus sign.

1. Additional common stock of $6,000 was issued and dividends of $10,000 were paid during the current year.
2. Additional common stock of $15,750 was issued and no dividends were paid during the current year.
3. No additional common stock was issued and dividends of $15,000 were paid during the current year.

a. Net income (loss)$ b. Net income (loss)$ c. Net income (loss)$

----- I was able to find the answer using this equation from a similar problem that was posted: Change in equity= - comon stock+change in equity + dividens However The book says that the equation form change in equity should be subtract dividens. I am looking for guidence on how we decide if we are subtracing or adding ocmon stock, and why we add dividens instead of subtract