Misra Company Compiled the Following Financial Information as of December

question 165

Multiple Choice

Misra Company compiled the following financial information as of December 31, 2015: $$\begin{array} { l r } \text { Revenues } & \$ 340,000 \\\text { Retained earnings } ( 1 / 1 / 15 ) & 60,000 \\\text { Equipment } & 80,000 \\\text { Expenses } & 250,000 \\\text { Cash } & 90,000 \\\text { Dividends } & 20,000 \\\text { Supplies } & 10,000 \\\text { Accounts payable } & 40,000 \\\text { Accounts receivable } & 70,000 \\\text { Common stock } & 80,000\end{array}$$ Misra's stockholders' equity on December 31, 2015 is

• A) $90,000.
• B) $140,000.
• C) $210,000.
• D) $250,000.

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Definitions:

Sales Commission

A portion of the sale price of goods or services paid to the salesperson as a reward for making the sale.

Wash Sale Rules

IRS regulations that disallow the claim of a capital loss for tax purposes if a substantially identical security is purchased within 30 days before or after the sale.

Loss Disallowed

A financial loss that cannot be deducted from taxable income as per tax regulations, often due to specific restrictions or limitations.

Personal Residence

The primary dwelling in which a person lives, often eligible for certain tax benefits, like the deduction of mortgage interest and property taxes.