Use the Following Table to Answer the Following Questions

question 38

Multiple Choice

Use the following table to answer the following questions.

-What is the surplus when the price floor is $0.75 in the market for public transportation?

• A) 100,000
• B) 86,000
• C) 75,000
• D) 116,000
• E) 0 (zero)

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Definitions:

Land Account

An account on a company's balance sheet that represents the cost of land owned by the company without any depreciation applied, since land is considered to have an unlimited useful life.

Investment Account

An account held at a financial institution for the purpose of managing securities, such as stocks and bonds, for investment purposes.

Equity Method

An accounting technique used to record investments in other companies, where the investment is initially recorded at cost and adjusted over time for the investor's share of the investee's net profits or losses.

Undervalued Inventory

Inventory items that are reported at a value lower than their actual market value or cost of replacement.