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:

Bribery

The offering, giving, receiving, or soliciting of something of value as a means of influencing the actions of an individual holding a public or legal duty.

Building Contract

A legal agreement between a property owner and a contractor for the construction of a building, specifying terms, conditions, and scope of work.

Ontario

A province in Canada known for its natural beauty, including lakes and forests, and as the home of Canada's largest city, Toronto.

Innocent

Free from guilt, wrongdoing, or blame in a specific situation or context.