Suppose for a particular year a firm had comprehensive income of $9,000, a beginning book value of equity of $76,000, and an ending book value of equity of $77,000. Using the clean surplus accounting relation, how much were the firm's dividends that year?

B. $8000

Explanation:

Given that

Income = $9000

Beginning book value = 76000

Ending book value = 77000

Dividends = Income + beginning book value of equity - ending book value of equity.

Therefore,

Dividends = 9000 + 76000 - 77000

= 85000 - 77000

= $8000

Thus, dividends for the following year given the following data is = $8000