Amber Devices Ltd. has total assets worth $900 million and total liabilities worth $475 million at the end of December 31. What is the amount of money received by the stockholders, if Amber liquidates all of its assets for $850 and pays off all of its outstanding debt at book value?
A)$850 million
B)$475 million
C)$1,325 million
D)$425 million
E)$375 million

Question

Quizplus · Accepted Answer

The stockholders receive the remaining amount after paying off liabilities: $850 million (liquidated assets) - $475 million (liabilities) = $375 million.