Mega Computer's Financial Statements Show 1000 Shares of Common Stock

question 138

Multiple Choice

Mega Computer's financial statements show 1000 shares of common stock with a par value of $10 000,retained earnings of $20 000,additional paid in capital of $10 000,and long-term debt of $30 000.What is the book value of a share of Mega's stock?

• A) $70.00
• B) $20.00
• C) $40.00
• D) $30.00
• E) $50.00

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Definitions:

Property Taxes

Taxes charged by local governments on real estate and sometimes personal property, based on the assessed value of the property.

Special Assessment

A charge that local governments impose on property owners to fund specific projects, such as infrastructure improvements, which directly benefit the property owners.

Derived Tax Revenues

Revenues obtained from taxes that are not directly levied on income or profits but are instead based on the use or consumption of goods and services.

Committed

Refers to being pledged or bound to a certain course or policy, especially in the context of project or resource planning.