Beginning equity is $12,000. There are additional investments of $6,000, net income of $3,000, and dividends of $1,000. What is ending equity?

1. Start with beginning equity of $12,000. 2. Add additional investments: $12{,}000 + 6{,}000 = 18{,}000$. 3. Add net income: $18{,}000 + 3{,}000 = 21{,}000$. 4. Subtract dividends: $21{,}000 - 1{,}000 = 20{,}000$. 5. Option B adds the dividend; option C omits net income; option D drops the investment. 6. Therefore ending equity is $20,000. _Source: Jonick, Principles of Financial Accounting (CC BY-SA 4.0), §1.8 "Changes in Stockholders' Equity", p.48_