Question

If beginning capital was $110,000, ending capital was $95,000, and the owner's withdrawals were $10,000, the amount of net income or net loss was a Question 10 options: net income of $15,000. net loss of $5,000. net loss of $15,000. net income of $5,000.

Answer 1

The answer is option B. Net loss of $5,000

Step-by-step explanation:

Answer 2

The answer is option B. Net loss of $5,000

Step-by-step explanation:

Beginning capital = $110,000

Withdrawal = $ 10,000

Capital left = $110,000 - $ 10,000 = $100,000

Ending capital = $95,000

Since the ending capital is less than the beginning capital, there is a loss.

net loss = $100,000 - $95,000 = $5,000