Problem on capital maintenance concept


Garcia Company began 2010 with net assets of $80000. Net income calculated by using the capital maintenance concept was $21000. During 2010 owners contributed $26000 of new capital. By year-end, the net assets totaled $78000. Dividends to the owners during 2010 were:

a) $49000

b) $28000

c) $23000

d) $2000

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Accounting Basics: Problem on capital maintenance concept
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