Answer:
The amount of net income for 2016 was $35,000
Explanation:
For calculating the net income first we have to compute the retained earning for 2015 year.
Retained earning = Assets - Liabilities - Common stock
= $87,000 - $24,000 - $21,000
= $42,000
Now, we can find the net income by retained earning statement which is in equation that it shown below:
Retained earning 2015 + Net income - Dividend paid = Retained earning 2016
$42,000 + Net income - $23,000 = $54,000
$19,000 + Net income = $54,000
Net income = $54,000 - $19,000 = $35,000
Hence, the amount of net income for 2016 was $35,000
