The Arcadia Company reported the following financial results during its first two years of operations:

Assuming that no dividends were declared and that no additional capital was invested in Year 2, determine Arcadia’s net income (or loss) for Year 2.

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Year End Assets Liabilities + Shareholders' Equity Year 1... Year 2... $80,000 70,000 $60,000 + 40,000 $20,000 30,000