Use the Following Information for Questions
Metzger Company Compiled

question 186

Multiple Choice

Use the following information for questions
Metzger Company compiled the following financial information as of December 31, 2011: $$\begin{array} { l r } \text { Revenues } & € 140,000 \\\text { Retained earnings } ( 1 / 1 / 11 ) & 70,000 \\\text { Equipment } & 40,000 \\\text { Expenses } & 125,000 \\\text { Cash } & 35,000 \\\text { Dividends } & 10,000 \\\text { Supplies } & 5,000 \\\text { Accounts payable } & 20,000 \\\text { Accounts receivable } & 15,000 \\\text { Share capital ordinary } & 25,000\end{array}$$
-Metzger's equity on December 31, 2011 is

• A)€70,000.
• B)€60,000.
• C)€75,000.
• D)€85,000.

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Definitions:

Residual Value

The estimated amount that an asset is expected to realize at the end of its useful life, after deducting expected costs of disposal.

Mine

In a business context, mine refers to an excavation in the earth for extracting minerals or metals, a significant source of resources and industrial materials.

Depletion

The allocation of the cost of natural resources over the period they are consumed or sold.