In a Trade with the Government of an Oil Producing

question 59

Multiple Choice

In a trade with the government of an oil producing nation,a manufacturer will deliver 14 Caterpillar D9 tractors,with a value of $350,000 per tractor,and receive 45,000 barrels of oil,valued at $115 per barrel.What is the net benefit of this trade to the manufacturer?

• A)$158,000
• B)$275,000
• C)$1,750,000
• D)$4,900,000

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Definitions:

Preferred Stock

A class of ownership in a corporation with a fixed dividend, receiving payment before common stockholders and typically without voting rights.

Treasury Stock

Shares of a company's own stock that it has reacquired and held in its treasury, reducing the amount of outstanding stock on the market.

Net Income

The amount of earnings remaining after subtracting all costs, taxes, and expenses from total revenue, indicative of a company's profitability.

Common Stockholders' Equity

Equity representing the ownership interest of common shareholders in a company, reflected as the share capital and retained earnings.