Question - Megn Corporation had beginning total liabilities of $40,000 and ending total liabilities of $60,000. The beginning balance in stockholders' equity was 50,000. During the year, total assets increased 35,000. In addition, capital stock of 10,000 was issued and dividends of $5,000 were declared and paid. How much was Mega's net income for the year? HINT: Use changes in the accounting equation to answer this problem.
a. $20,000
b. 15,000
c. 10,000
d. $ 5,000
e. None of these