Question

Net income (or net loss) during 20Y3, assuming that as of October 31, 20Y3, assets were $757,510, liabilities were $123,250, and no additional common stock was issued or dividends paid.

A) $634,260
B) $634,260 (net loss)
C) $634,260 (net income)
D) $634,260 (no change)

Answer 1

The net income (or net loss) during 20Y3 is $634,260.

Step-by-step explanation:

The net income (or net loss) during 20Y3 can be calculated by subtracting the liabilities from the assets. In this case, the assets are $757,510 and the liabilities are $123,250. So, the net income (or net loss) is:

Net Income = Assets - Liabilities

Net Income = $757,510 - $123,250 = $634,260

Therefore, the correct answer is C) $634,260 (net income).