Refer to Practice 4-1. Assets with the same productive capacity as the assets comprising the $365,000 beginning asset balance had a current cost of $437,000 at the end of the year. Using the physical capital maintenance concept, determine the company's income for the year?
In Refer to Practice 4-1.
..............................................................................Beginning .............. Ending
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $365,000 ............... $625,000
Total liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . 230,000 ................. 280,000
During the year, the company received $100,000 in new investment funds contributed by the owners.