Joe Donaldson deposited $80,000 in a bank account, purchased a company for $60,000 cash (Building $40,000 and Inventory $20,000), performed services for clients for $10,000 cash, purchased supplies for $5,000 cash, and paid utilities of $2,000 cash. What is the amount of total assets?

Question

Quizplus · Accepted Answer

To find the total assets, we need to add up all the assets that Joe Donaldson has.

Assets: 
Cash: $80,000 (initial deposit) + $10,000 (cash from client services) + $5,000 (supplies) - $60,000 (used to purchase company) - $2,000 (utilities) = $33,000 
Building: $40,000 
Inventory: $20,000

Total assets = $33,000 + $40,000 + $20,000 = $88,000

Therefore, the correct answer is C) $88,000.

Joe Donaldson Deposited $80,000 in a Bank Account, Purchased a Company