2. On December 31, 2020, the total assets of Allen, Inc. were $91,000, and liabilities were...

 

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2. On December 31, 2020, the total assets of Allen, Inc. were $91,000, and liabilities were $48,000. Allen, Inc. began business January 1, 2016, and had an average net income of $16,000 per year. Total dividends paid for the five-year period were $63,850. Instructions: Compute Allen, Inc.'s owners' equity balance as of December 31, 2020 and the amount of its original investment. 2. On December 31, 2020, the total assets of Allen, Inc. were $91,000, and liabilities were $48,000. Allen, Inc. began business January 1, 2016, and had an average net income of $16,000 per year. Total dividends paid for the five-year period were $63,850. Instructions: Compute Allen, Inc.'s owners' equity balance as of December 31, 2020 and the amount of its original investment.

Answer rating: 100% (QA)

SOLUTION To compute Allen Incs owners equity balance as ... View the full answer