Question

Fiji, Inc. started 2025 with $12,000 in assets and $2,500 in liabilities. Fiji had issued 50 shares of stock when it went into business in 2019 for $10 per share, and not stock has been issued since that time. At December 31, 2025, Fiji had $23,000 in assets and $4,000 in liabilities. How much was Fiji's net income during 2025 if the company paid $1,000 in dividends during the year?
a $11,500
b $12,000
c $10,500
d $11,000
e None of the above

Answer 1

Answer:

$See below

Explanation:

Fuji Net income in 2025 is computed as

= Beginning asset + Dividend - Beginning liabilities

Given that;

Beginning asset = $12,000

Dividend = $1,000

Beginning liabilities = $2,500

Net income

= $12,000 + $1,000 - $2,500

= $10,500