The Debra Company had the following assets and liabilities on the dates indicated:

Debra began business on January 1, 1996, with an investment of \(\$ 100,000\).
\section*{Instructions}
From an analysis of the change in stockholders' equity during the year, compute the net income (or loss) for: \(\square\)

(a) 1996 , assuming Debra paid \(\$ 15,000\) in dividends for the year.

(b) 1997, assuming stockholders made an additional investment of \(\$ 50,000\) and Debra paid no dividends in 1997.

(c) 1998 , assuming stockholders made an additional investment of \(\$ 10,000\) and Debra paid dividends of \(\$ 20,000\) in 1998 .

Transcribed Image Text:

December 31 Total Assets Total Liabilities 1996 $380,000 $250,000 1997 $460,000 $310,000 1998 $590,000 $400,000