An Owner Investment of a Building, Valued at $100,000 with an $80,000

question 90

Multiple Choice

An owner investment of a building, valued at $100,000 with an $80,000 outstanding mortgage, transferring this asset into the business would:

• A) increase shareholders' equity by $20,000
• B) increase shareholders' equity by $100,000
• C) increase assets by $20,000
• D) increase assets by $80,000

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Definitions:

Commission Rate

The percentage or fixed amount of compensation paid to an agent or employee for facilitating or completing a sale or transaction.

Freight

The transportation of goods, cargo, or commodities by land, sea, or air.

Net Proceeds

The amount of money remaining after all deductions, like expenses and taxes, are subtracted from the gross proceeds.

Weekly Salary

The total amount of money earned by an employee for work performed in a week.