Four different corporations-W, X, Y, and Z-show the same balance sheet data at the beginning and end of a year. These data, exclusive of the amount of stockholders' equity, are summarized as follows:
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Total
Assets
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Total
Liabilities
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|
Beginning of the year
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$375,000
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$150,000
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End of the year
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600,000
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325,000
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On the basis of the above data and the following additional information for the year, determine the net income (or loss) of each company for the year. (Hint: First determine the amount of increase or decrease in stockholders' equity during the year.)
Company W: No additional capital stock was issued, and no dividends were paid. Company X: No additional capital stock was issued, but dividends of $30,000 were paid.
Company Y: Capital stock of $75,000 was issued, but no dividends were paid.
Company Z: Capital stock of $75,000 was issued, and dividends of $30,000 were paid.