Moon Corporation Had the Following Accounts and Balances: If

question 37

Multiple Choice

Moon Corporation had the following accounts and balances: If the equipment was sold for $35,000, what would be the total of stockholders' equity?

• A)$65,000
• B)$90,000
• C)$115,000
• D)$125,000

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Definitions:

Common Stock

Common stock represents ownership shares in a corporation, giving holders voting rights and the potential to receive dividends.

Long-term Investment

Investments held for an extended period, typically more than one year, with the intention of earning returns over time.

Dividends receivable

Dividends declared and owed to a shareholder but not yet paid.

Dividend Income

Income received from owning shares in a company, typically distributed from the company's profits.