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Assume the following for the year 2000 for the Staubus Company: Revenues $1,000,000 Operating expenses Cost of goods sold $400,000 Depreciation $100,000 Salaries and wages
Assume the following for the year 2000 for the Staubus Company:
Revenues | $1,000,000 | |
---|---|---|
Operating expenses | ||
Cost of goods sold | $400,000 | |
Depreciation | $100,000 | |
Salaries and wages | $200,000 | |
Bond interest (8% Debentures sold at maturity value of $1,000,000) | $80,000 | |
Dividends declared on 6% Preferred Stock (par value $500,000) | $30,000 | |
Dividends declared of $5 per share on Common Stock (20,000 shares outstanding, a par value of $100 per share) | $100,000 |
- Determine the income under each of the following equity theories:
- Proprietary theory
- Entity theory (orthodox view)
- Entity theory (unorthodox view)
- Residual equity
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