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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
  1. 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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