Jack Henry borrowed $800,000 from Walt Bank to open a new bike store called Wooden Wheels. Jack transferred $650,000 of the cash that he borrowed to the store on the first day of the year. How many reporting entities exist in this scenario?
A) One reporting entity
B) Two reporting entities
C) Three reporting entities
D) Four reporting entities

Question

Quizplus · Accepted Answer

There are three reporting entities in this scenario: Jack Henry (as an individual or business owner), Walt Bank (the lender), and Wooden Wheels (the new bike store). Each has separate financial interests and records to maintain.

Jack Henry Borrowed $800,000 from Walt Bank to Open a New