The changes in account balances for Elder Company for 2011 are as follows:
Assets $480,000 debit
Common stock 250,000 credit
Liabilities 160,000 credit
Paid in capital - excess of par 30,000 credit
Assuming the only changes in retained earnings in 2011 were for net income and a $50,000 dividend, what was net income for 2011?
a. $40,000.
b. $60,000.
c. $70,000.
d. $90,000.