Thirty Percent of the Total Assets of Shanahan Corporation Have

question 132

Multiple Choice

Thirty percent of the total assets of Shanahan Corporation have been financed through borrowing.The total liabilities of the company are $600,000.What is the amount of owners' equity?

• A)$ 180,000.
• B)$2,000,000.
• C)$1,400,000.
• D)$2,600,000.

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Definitions:

Transactions

The act of buying, selling, or exchanging goods, services, or financial assets in a market.

Optimal Spread

The most favorable allocation or distribution of assets, investments, or resources to minimize risk and maximize returns.

Market Maker

A firm or individual that quotes both a buy and a sell price in a financial market or commodity, hoping to make a profit on the bid-offer spread.

Transactions

The act of conducting business or exchange between parties, often involving the transfer of goods, services, or funds.