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A company started the year with the following: Assets $111,000; Liabilities $39,000;
Common Stock $69,000; Retained Earnings $3,000.
During the year, the company earned revenue of $5,900, all of which was received in cash, and incurred expenses of $3,450, all of which were unpaid as of the end of the year. In addition, the company paid dividends of $1,900 to owners. Assume no other activities occurred during the year.
What was the amount of net income for the year?
$2,450
$5,900
$3,450
$1,900
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