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9 January, 13:25

During 2016, Banigo Corporation experienced an increase in total assets of $72,600 and an increase in total liabilities of $40,900. Assuming that capital stock increased by $5,000 and no dividends were paid, calculate Banigo's net income or net loss for 2016.

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  1. 9 January, 16:13
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    The net income = $26,700

    Explanation:

    Data provided as per the question

    Increase in Assets = $72,600

    Increase in Liabilities = $40,900

    Common stock issued = $5,000

    The computation of net income or net loss for 2016 is shown below:-

    = Increase in Assets - Increase in Liabilities - Common stock issued + Dividend

    = $72,600 - $40,900 - $5,000 + $0

    = $26,700

    Therefore the net income = $26,700
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