Use the Following Data to Determine the Total Dollar Amount

question 97

Multiple Choice

Use the following data to determine the total dollar amount of assets to be classified as investments. Koonce Office Supplies
Balance Sheet
December 31, 2017
$\begin{array}{lrlr}\text { Cash } & \$ 195,000 & \text { Accounts payable } & \$ 210,000 \\\text { Accounts receivable } & 150,000 & \text { Salaries and wages payable } & 30,000 \\\text { Inventory } & 165,000 & \text { Mortgage payable } & 240,000 \\\text { Prepaid insurance } & 90,000 & \text { Total liabilities } & \$ 480,000\\\text { Stock investments } & 255,000 \\\text { Land } & 270,000 \\\text { Buildings } \quad \$ 315,000& &\text { Common stock }&\$360,000\\\text { Less: Accumulated }&&\text { Retained earnings }&750,000\\\text { depreciation }\quad(60,000) &255,000&\text { Total stockholders' equity }&\$1,110,000\\\text { Trademarks } & 210,000 &\text { Total liabilities and }\\\text { Total assets } & \$ 1,590,000&\text { stockholders' equity }&\$1,590,000\end{array}$

• A)$0
• B)$525,000
• C)$255,000
• D)$465,000

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Definitions:

Limited Partnership

A form of partnership consisting of at least one general partner, who manages the business and has unlimited liability, and one or more limited partners, who have limited liability.

Managerial Powers

The authorities vested in managers of an organization to make decisions, guide operational practices, and direct the workforce towards achieving the firm's objectives.

Buyout Clause

A contractual provision allowing for the purchase of a particular asset or the stake of a business partner under predefined circumstances.

Limited Partnership

A partnership arrangement where some partners have limited liability to the extent of their investment, while others have full liability.