At the time of liquidation. Fairchild Co. 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 receive?

A. $200,000

B. $80,000

C. $90,000

D. $100,000

Question

Business

Gunner Reed

13 November, 00:23

At the time of liquidation. Fairchild Co. 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 receive?

A. $200,000

B. $80,000

C. $90,000

D. $100,000

+3

Answers (1)

Know the Answer?

Christian Kennedy · Answer 1

B. $80,000

Explanation:

Total Asset = $200,000

Total Liabilities = $120,000

Shareholders are entitle to receive the assets net of liabilities as follows:

Total Net Asset = Total Assets - Total liabilities

Total Net Asset = $200,000 - $120,000

Total Net Asset = $80,000

$80,000 of Fairchild's assets are the shareholders entitled to receive.

At the time of liquidation. Fairchild Co. 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 receive?A. $200,000B. $80,000C. $90,000D. $100,000

At the time of liquidation. Fairchild Co. 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 receive?

A. $200,000

B. $80,000

C. $90,000

D. $100,000