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a. $35,000
b. $45,000
c. $20,000
d. $90,000
b. $45,000 Thus Revenue $100,000 - Expenses $55,000. Dividend is not an expense treated in the income or profit or loss statement to obtain net income. It occures in the statement of changes in equity which will give a retained earnings of $35,000 thus net income $45,000 - $10,000
Yes, Option B is the right answer.
b) $45000
The Dividend show up in the Statement of Retained Earnings, or the Statement of Changes in Equity, depending on what you use. Dividends are a distribution of profit, that is not an expense or a loss. So it will not comes in Income Statement.
It would be b. $45,000.....
Answer is (b). Net income is45000$ as dividends is the form of earnings to shareholders, thus not deducted while calculating net income,
B----------------------------------------