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Scenario 3.2 Use the following to answer the questions.
Clayton Homes, a mobile home manufacturer since 1934, introduced its new i-House in 2007. The i-House is one of the first of its kind, designed as an updated, modern version of the modular home, offered as a base home plus add-ons known as "pods." The base home is a one-bedroom, one-bath, 734-square-foot version at a price of around $80,000. There is also a 1,000-square-foot version for around $100,000. All versions may add on the additional one-room pods, which are shipped to your location and constructed on site. The homes offer galvanized metal roofing, corrugated steel siding, VOC-free paints, and a "butterfly" roof that collects rainwater. The i-House uses 30% less energy than a similar square-foot home and offers "green" characteristics of solar panels, tankless water heaters, and low-flow faucets. In addition, it comes with bamboo flooring, a renewable resource. The modular, prefabricated design offers endless options for creating the customer's home, and its engineered building system cuts down on construction waste. Due to the "green effects" of the i-House, the state governments have given it a tax abatement for any sales taxes.
Refer to Scenario 3.2. The income a consumer would use to purchase an i-House is considered ____ income.
Company's Members
Individuals or entities that have an ownership interest in a corporation, commonly referred to as shareholders or stockholders.
ASIC
The Australian Securities and Investments Commission; an independent Australian government body that acts as the corporate regulator.
Liquidation Surplus
The amount of money remaining after all liabilities and obligations of a liquidating entity have been settled, which is then distributed to shareholders.
Preference Shares
Shares that give holders preferential rights over common shareholders regarding dividends and assets distribution upon liquidation.
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