Last Year John Purchased a Car for $45 000,a Desktop

question 20

Multiple Choice

Last year John purchased a car for $45 000,a desktop computer for $4000,and a camera for $2500.At present,John has $1000 in credit card debt and a $1800 bank loan.With reasonable estimate of market values,John's car is worth $40 000,computer is worth $2000,and camera is worth $3000.What is John's net worth today?

• A)$37 200
• B)$48 700
• C)$42 200
• D)$39 200

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Definitions:

Business Combination

The process of merging two or more companies into a single entity, often to expand business operations or to enter new markets.

Consolidated Common Stock

The aggregation of common stock of a parent company and its subsidiaries, presented as total common stock in consolidated financial statements.

Common Stock

Common stock represents ownership shares in a corporation, giving holders voting rights and a portion of the company's profits through dividends.

Par Value

The nominal or face value of a stock or bond, as stated by the issuing company, that has no direct correlation to the market value.