A Corporation Had Total Assets of $40,000, Total Liabilities of $20,000

Multiple Choice

A corporation had total assets of $40,000, total liabilities of $20,000, and total contributed capital of $8,000 at the beginning of the year. For the year, the corporation earned net income of $50,000 and paid cash dividends of $10,000. At the end of the year, the company had total assets of $80,000 and its total contributed capital remained at $8,000. At the end of the year, the corporation had total liabilities of:

A) $-0-
B) $20,000
C) $28,000
D) $32,000