Use the Following Data to Determine the Total Dollar Amount

question 124

Multiple Choice

Use the following data to determine the total dollar amount of assets to be classified as investments. Eddy Auto Supplies
Balance Sheet
December 31, 2017
$\begin{array}{lrlr}\text { Cash } & \$ 126,000 & \text { Accounts payable } & \$ 165,000 \\\text { Accounts receivable } & 120,000 & \text { Salaries and wages payable } & 30,000 \\\text { Inventory } & 210,000 & \text { Mortgage payable } & 270,000\\\text { Prepaid insurance } & 90,000 & \text { Total liabilities } &\$465,000\\\text { Stock investments } & 255,000 & \\\text { Land } & 285,000 &\\\text { Buildings }\quad\$339,000&&\text { Common stock } & \$ 360,000 \\\text { Less: Accumulated }&&\text { Retained earnings } & 750,000\\\text { depreciation }\quad(60,000) &279,000&\text { Total stockholders' equity }&\$1,110,000\\\text { Trademarks }&210,000&\text { Total liabilities and }\\\text { Total assets }&\$1,050,000&\text { stockholders' equity }&\$1,575,000\end{array}$

• A)$0
• B)$465,000
• C)$255,000
• D)$585,000

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Definitions:

Intangible Property

Assets that have no physical presence but have value, such as copyrights, trademarks, and patents.

Bank Accounts

Financial accounts maintained by individuals or businesses with a bank, allowing for the deposit and withdrawal of money and other financial transactions.

Stocks

Shares of ownership in a company, representing a claim on part of the company's assets and earnings.

Purchase

Purchase refers to the act of obtaining goods or services in exchange for money or other valuable consideration.