The Constantine Company had the following assets and liabilities on the dates indicated.

December 31 Total Assets Total Liabilities
2015 $480,000 $250,000
2016 $460,000 $220,000
2017 $590,000 $300,000

Constantine began business on January 1, 2015, with an investment of $100,000.


Instructions

From an analysis of the change in owner’s equity during the year, compute the net income (or


loss) for:


(a) 2015, assuming Constantine’s drawings were $45,000 for the year.

(b) 2016, assuming Constantine made an additional investment of $50,000 and had no drawings in 2016.

(c) 2017, assuming Constantine made an additional investment of $15,000 and had drawings of $40,000 in 2017.