Stockholders' Equity for Commerce Corporation on January 1, 2010 and December

question 5

Multiple Choice

Stockholders' equity for Commerce Corporation on January 1, 2010 and December 31, 2010 were $60,000 and $75,000, respectively. Assets on January 1, 2010 and December 31, 2010 were $115,000 and $105,000, respectively. Liabilities on January 1, 2010 were $55,000. What is the amount of liabilities on December 31, 2010?

• A)$40,000
• B)$15,000
• C)$30,000
• D)The amount is indeterminable from the given information.

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Definitions:

1985 RULPA

The Revised Uniform Limited Partnership Act of 1985, a set of laws adopted by various states in the U.S. to govern the formation, operation, and dissolution of limited partnerships.

Uniform Partnership Act

A set of laws adopted by states in the United States to govern the formation, operation, and dissolution of partnerships.

Limited Liability

Limited liability is a legal structure that restricts an investor's or owner's loss to the amount invested, protecting personal assets from business debts and claims.

Limited Partners

Investors in a limited partnership who contribute capital but have limited liabilities and are not involved in day-to-day management of the business.