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On January 1, Year 2, Chavez Company Had Beginning Balances

Question 23

Multiple Choice

On January 1, Year 2, Chavez Company had beginning balances as follows: On January 1, Year 2, Chavez Company had beginning balances as follows: During Year 2, Chavez paid dividends to its stockholders of $2,000. Given that ending retained earnings was $6,000, what was Chavez's net income for the Year 2? A) $3,000 B) $5,000 C) $7,000 D) $2,000 During Year 2, Chavez paid dividends to its stockholders of $2,000. Given that ending retained earnings was $6,000, what was Chavez's net income for the Year 2?


A) $3,000
B) $5,000
C) $7,000
D) $2,000

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