Assume That Pacer Company's Paid- in Capital at the Beginning

Multiple Choice

Assume that Pacer Company's paid- in capital at the beginning of the period was $475,000. Pacer Company's total revenues and total expenses were $870,000 and $550,000, respectively. A dividend of $70,000 was declared and paid to shareholders. Pacer Company's net income is:

A) $250,000
B) $405,000
C) $320,000
D) $390,000