Question

A brick company calculated its stockholders' equity for the fiscal year 2022. Its overall revenues were $3.8 million, expenses were $2.4 million, and dividends paid were $500,000. The company experienced a net _________ of

A. loss; $900,000.
B. loss; $1.4 million.
C. income; $900,000.
D. income; $1.4 million.

Answer 1

Income; $1.4 million.( D)

Step-by-step explanation:

$' m

Revenue 3.8

Expenses ( 2.4)

Profit 1.4

The net income is calculated by subtracting expenses from revenue. Dividend paid is not considered when calculating net income, it is only considered while calculating stockholders' equity retained earnings.