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fomenos
3 years ago
5

Stone Company has beginning equity of $1,200,000, net income of $200,000, dividends of $120,000 and investments by owners in exc

hange for stock of $40,000. Its ending equity is:
A. $ 892,000
B. $ 960,000
C. $1,072,000
D. $1,320,000
Business
1 answer:
meriva3 years ago
4 0

Answer:

The correct answer is D. $1,320,000 .

Explanation:

In this case, it should be considered that the Stone Company is just beginning to operate, so the capital at the end of the period is made up of the following:

Initial Capital: $ 1,200,000

Dividends: $ 120,000

TOTAL = $ 1,320,000

Net income is not part of the measurement of capital, since information on expenses must be available to calculate the profit or loss for the period. For its part, investments in shares are considered a current asset and do not enter into this calculation.

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3 years ago
Jenna began the year with a tax basis of $45,000 in her partnership interest. Her share of partnership debt consists of $6,000 o
agasfer [191]

Answer:

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3 years ago
You walk onto a used-car lot to buy a car. You are willing to pay up to $15,000 for a car of good quality but you value a lemon
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4 years ago
Jack is buying the Padillas' home. He makes his offer and in his terms states, he wants all the window treatments, refrigerator,
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Answer:

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3 years ago
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Answer:

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