The Following Information Is for Central Avenue Real Estate The Total Dollar Amount of Assets to Be Classified as \text

question 161

Multiple Choice

The following information is for Central Avenue Real Estate: $\begin{array}{c} \text { Central Avenue Real Estate}\\ \text { Balance Sheet }\\ \text { December 31, 2016}\\\\\begin{array}{lll} \text { Cash}& & \$ 25,000 \\ \text { Prepaid Insurance } & & 40,000 \\ \text { Accounts Receivable } & & 50,000 \\ \text {Inventory} & & 80,000 \\\text {Land Held for Investme } & & 75,000 \\\text {Land }& & 120,000 \\ \text { Building } & \$ 110,000 & \\\text { Less Accumulated } \\\text { Depreciation } & (20,000) &90,000 \\ \text { Trademark } & &70,000 \\ \text {Total Assets}&&\$550,000\\\end{array}\begin{array}{lr}\text { Accounts Payable } & \$ 60,000 \\\text { Salaries and Wages Payable } & 25,000 \\\text { Mortgage Payable } & 85,000\\\quad \text { Total Liabilities } & 170,000\\\\\\\\\text { Owner's Capital } &380,000 \\\\\text { Total Liabilities and } & \\\text { Owner's Equity } & \$ 550,0000\end{array}\end{array}$ The total dollar amount of assets to be classified as current assets is

• A) $115000.
• B) $195000.
• C) $200000.
• D) $270000.

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Definitions:

Intercompany Transactions

Financial dealings between two or more entities within the same parent company structure.

Integrated Subsidiary

A subsidiary whose operations are closely intertwined with its parent company, sharing resources, processes, and management.

Foreign Exchange Gains

Profits resulting from changes in exchange rates affecting the value of assets, liabilities, or financial transactions denominated in a currency other than the entity's functional currency.

Wholly Owned Subsidiary

A subsidiary where the parent company owns 100% of the shares, giving it complete control over the subsidiary.