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AAA Company has published their financial statement of this year. Some key information from the balance sheet at the end of the year is
AAA Company has published their financial statement of this year. Some key information from the balance sheet at the end of the year is shown as follows: Investment in BBB Company, at fair value $150,000 Deferred taxes $86,000 Common stock, $1 par value $550,000 Preferred stock, $100 par value $175,000 Retained earnings $893,000 Accumulated other comprehensive income $46,000 Assume the investment in BBB Company had an original cost of $120,000. And the investment in BBB Company is classified as available-for-sale. (a) What is the AAA Company's equity value of common stock? (b) What is the AAA Company's equity value of preferred stock? (c) What is the AAA Company's total owners' equity at year-end? (5 marks) (5 marks) (10 marks)
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