At the beginning of the year, Company ABC reported total liabilities of $185,300. At the end of the year, the company reported total liabilities of $220,400. Total assets at the end of the year were $43,000 larger than at the beginning of the year. Assuming that the company declared and paid a $3,100 dividend during theyear, what was net income (loss) for the year?Select one:a. $11,000 Liabilities increased $35,100. Assets increased $43,000. The only way that is possible is if equity increased $7,900. That means Retained Earnings was $7,900.Retained Earnings plus Dividends equal Net Income. $7,900+$3,100=$11,000.b. $177,400c. $7,900d. $12,300FeedbackYour answer is correct.The correct answer is: $11,000Question 2IncorrectMark 0.00 out of 10.00Flag questionQuestion textIf ending inventory on the last day of the year is overstated by $14,000, what is the effect on net income for the current year?Select one:a. Net income is overstated by $14,000.b. Net income is overstated by $28,000.c. The answer cannot be determined from the information given.