Giphons Corp

question 135

Multiple Choice

Giphons Corp. has common stock of $3,500,000, Retained Earnings of $1,800,000, unrealized gains on trading securities of $60,000 and unrealized losses on available-for-sale securities of $110,000. What is the total amount of their stockholders' equity?

• A) $5,190,000.
• B) $5,300,000.
• C) $5,240,000.
• D) $5,130,000.

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Definitions:

Disposable Income

Net funds allocated to households for their spending and saving post the application of income taxes.

Consumption

Consumption is the act of using goods and services by households or individuals.

MPS

Marginal Propensity to Save, expressing the portion of additional income that a household saves rather than spends.

Disposable Income

The amount of money that households have available for spending and saving after income taxes have been accounted for. It is a key indicator of economic health and consumer spending.