The Following Information Pertains to Polk Company: Property, Plant And \begin{array}{rrrr}
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question 64

Multiple Choice

The following information pertains to Polk Company: Property, plant and $\begin{array}{rrrr}\text { Currentassets } & \$ 100,000 & \text { Currentliabilities } & \$ 75,000 \\\text { equipment } & 150,000 & \text { Long term liabilities } & 100,000\\\text { Constructioninprogress } &50,000&\text { Stockholders'equity }&125,000\\\text { Total assets }&\$300,000&\text { Total equities }&\$300,000\end{array}$ Invested capital is _ if it is defined as stockholders' equity.

• A) $225,000
• B) $125,000
• C) $300,000
• D) $250,000

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Definitions:

Third Party

An entity that is not directly involved in a transaction or agreement but may be affected by it or play a role in its outcome.

Principal

The primary party involved in a financial transaction or agreement, often referring to the main amount of money borrowed or invested.

Legal Action

A formal proceeding in a court, which involves enforcing or defending a legal right.

Authorised

Officially granted permission or power to do something within a particular scope or sphere.