Toth Company had the following assets and liabilities on the dates indicated.

Toth began business on January 1, 2019, with an investment of $100,000 from stockholders.

Instructions

From an analysis of the change in stockholders' equity during the year, compute the net income (or loss) for:

a. 2019, assuming Toth paid $15,000 in dividends for the year.

b. 2020, assuming stockholders made an additional investment of $50,000 and Toth paid no dividends in 2020.

c. 2021, assuming stockholders made an additional investment of $15,000 and Toth paid dividends of $30,000 in 2021.

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December 31 Total Assets Total Liabilities $400,000 $260,000 2019 $480,000 2020 $300,000 $590,000 $400,000 2021