K2 Corporation has assets of $3,600,000, common stock of $936,000, and retained earnings of $570,000. What are the creditors' claims on their assets?
A)$3,234,000
B)$1,506,000
C)$2,094,000
D)$3,966,000

Question

Quizplus · Accepted Answer

Creditors' claims on the assets can be calculated as Total Assets - Common Stock - Retained Earnings = $3,600,000 - $936,000 - $570,000 = $2,094,000. Therefore, the answer is choice C.

K2 Corporation Has Assets of $3,600,000, Common Stock of $936,000