Martha's Enterprises Spent $2,500 to Purchase Equipment Three Years Ago

question 2

Multiple Choice

Martha's Enterprises spent $2,500 to purchase equipment three years ago. This equipment is currently valued at $2,000 on today's balance sheet but could actually be sold for $2,200. Net working capital is $300 and long-term debt is $900. Assuming the equipment is the firm's only fixed asset,what is the book value of shareholders' equity?

• A) $1,100
• B) $1,400
• C) $1,600
• D) $1,900
• E) The answer cannot be determined from the information provided

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Definitions:

Black Families

Households or family units consisting of individuals of Black or African descent, embodying a diverse array of cultural, social, and economic backgrounds.

Female Head

A reference to a household or organization led or managed by a woman.

Lorenz Curve

A graphical representation used to illustrate the distribution of income or wealth within a society, showing the proportion of the total income earned by any given percentage of the population.

Tax

Mandatory financial contributions imposed by governments on individuals, corporations, and other entities to fund public expenditure.