Answer:
Net income = $39,000
Explanation:
The computation of the amount of net income or net loss is presented below:
As we know that
The ending balance of retained earning = Beginning balance of retained earnings + net income or net loss - cash dividend paid
$88,000 = $70,000 + net income or net loss - $21,000
$88,000 = $49,000 + net income or net loss
So, the net income is
= 88,000 - $49,000
= $39,000
