At the time of liquidation, Fairchild Company reported assets of $200,000, liabilities of $120,000, common stock of $90,000 and retained earnings of ($10,000). What amount of Fairchild's assets are the shareholders entitled to recetve? Multiple Choice $200,000 $80,000 $90,000 $100,000

At the time of liquidation, Fairchild Company reported assets of $200,000, liabilities of $120,000, common stock of $90,000 and retained earnings of ($10,000). What amount of Fairchild's assets are the shareholders entitled to recetve? Multiple Choice $200,000 $80,000 $90,000 $100,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 23E

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Concept explainers

Source of investments

A start-up business requires high investment along with its objectives, vision, mission, and business plan for the growth of the business. Investment is highly required for funding assets, working capital, and other operations of the business. An investment fund can be raised from various sources. Investment sources assist businesses to achieve their financial goals and support businesses to sustain and grow. Investors are willing to invest in businesses if adequate returns are entitled from the investments. Portfolio methods and risk evaluating measurements are utilized by investors to identify the best investment option.

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At the time of liquidation, Fairchild Company reported assets of $200,000, liabilities of $120,000, common stock of $90,000 and retained
earnings of ($10,000). What amount of Fairchild's assets are the shareholders entitled to recetve?
Multiple Choice
$200,000
$80,000
$90,000
$100,000
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