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

question 227

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 liabilities to be classified as current liabilities is

• A) $25000.
• B) $60000.
• C) $85000.
• D) $170000.

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Definitions:

Tariff

A tariff is a tax on imports or exports between sovereign states, often used by governments to protect domestic industries from foreign competition or to generate revenue.

Salmon

A species of fish commonly found in the Atlantic and Pacific Oceans, known for its pink to orange flesh.

Smoot-Hawley Tariff

A set of protectionist tariffs enacted in 1930 in the United States, which raised import duties on thousands of goods, contributing to the severity and duration of the Great Depression.

Dumping

The practice of a company selling a product in a foreign market at a price lower than its cost of production or lower than the price in its domestic market.