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<p><span>Gerald had beginning total stockholders' equity of $160,000. During the year, total assets increased by $240,000 and total liabilities increased by $120,000. Gerald's net income was $180,000. No additional investments were made; however, dividends did occur during the year. How much were the dividends?</span></p> <p><span>a.$20000 b.$60000 c. $140000 d.$220000</span></p> <p><span> </span></p>
B) $60,000
Option is B
The correct answer is6000?
total dividends = net income =180000 $
expected distributions dividends = net income - (increase of total assets - increase of total liabilities") =180000 -(240000 -120000)=60000 $
D option
