Crandall Company Reported the Following Amounts on Its Balance Sheet

Essay

Crandall Company reported the following amounts on its balance sheet on December 31 of the current year:
Answer each of the following independent questions:
a. Assume that Crandall's stockholders' equity on January 1 was $132,000. Crandall did not issue common stock during the year, but it paid $18,000 cash in dividends. How much is Crandall's net income or loss for the year?
b. Assume that Crandall's stockholders' equity on January 1 was $118,000, and that Crandall issued additional common stock of $35,000 and paid $30,000 in cash dividends before the end of the year. What was Crandall's net income or net loss for the year?