The Income Statement for the Year 2016 of Bugati Co

Multiple Choice

The income statement for the year 2016 of Bugati Co. contains the following information: $\begin{array}{lr}\text { Revenues } &&\$73,000 \\\text { Expenses: } & \\\text { Salaries and Wages Expense } & \$ 43,000 \\\text { Rent Expense } &12,000 \\\text { Advertising Expense } & 11,000 \\\text { Supplies Expense } &6,000 \\\text { Utilities Expense }& 3,500\\\text { Insurance Expense }&4,000 \\\quad \text { Total expenses } &&79,500 \\\text { Net income (loss) } &&\$(6,500) \end{array}$
At January 1 2016 Bugati reported owner's equity of $50000. Owner drawings for the year totalled $13000. At December 31 2016 the company will report owner's equity of

A) $19500.
B) $30500.
C) $37000.
D) $43500.