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Martha's Enterprises Spent $4,100 to Purchase Equipment Three Years Ago

Question 76

Multiple Choice

Martha's Enterprises spent $4,100 to purchase equipment three years ago.This equipment is currently valued at $2,700 on today's balance sheet but could actually be sold for $3,200.Net working capital is $400 and long-term debt is $2,300.Assuming the equipment is the firm's only fixed asset,what is the book value of shareholders' equity?


A) $1,300
B) $800
C) $1,600
D) $1,900
E) $2,200

Correct Answer:

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