Changes in the Balance Sheet Accounts at June 30, 2014

question 7

Multiple Choice

Changes in the balance sheet accounts at June 30, 2014 and 2015 for the Poker Company are presented below:
$\begin{array}{lr}\text { Assets } & \begin{array}{r}\text { Increase } \\\text { (Decrease }\end{array} \\\text { Cash } & \$ 80,000 \\\text { Accounts receivable } & 200,000 \\\text { Lnventory } & 300,000 \\\text { Long-term investments } & 200,000 \\\text { Equipment } & (200,000 \\\text { Accumulated depreciation } & (60,000) \\\\\text { Liabilities and Stockholders' Equity }\\\text {Accounts payable }&\$(40,000) \\\text {Dividends payable}&400,000\\\text {Notes payable-Current }&(200,000) \\\text {Notes payable-Long-term }&400,000\\\text {Common stock, \( \$ 1.00 \) par }&300,000\\\text {Additional paid-in capital }&100,000\\\text {Retained eamings }&80,000\\\end{array}$
Additional Information for 2015:
Net income was $480,000 and dividends of $400,000 were declared.
Common stock was issued for cash.
A Long-term investment was sold for $160,000.
A new Long-term investment was acquired for $360,000.
Equipment that cost $600,000 was sold for $200,000. The book value of those assets was $150,000.
-The purchase of equipment during 2015 is

• A)$250,000.
• B)$270,000.
• C)$300,000.
• D)$400,000.

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Definitions:

Heteronormativity

Is the belief that sex is binary (one is either male or female as conventionally understood), that sex ought to be perfectly aligned with gender, and that sexual relations are appropriate only between people of the opposite sex.

Social Assumption

Preconceived notions or generalized beliefs held by individuals about other people, groups, or societal norms, often without supportive evidence or personal experience.

Genitalia

The external and internal organs of the reproductive system in animals and humans.

Sexuality

The capacity for sexual feelings, including a person's sexual orientation, preferences, and practices.