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Income Determination Under Equity Theories

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Determine the income under each of the following equity theories:

-Proprietary theory
-Entity theory (orthodox view)
-Entity theory (unorthodox view)
-Residual theory

Would any of your answers change if the preferred stock is convertible at any time at the ratio of 2 preferred shares for 1 share of common stock?

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This solution of over 200 words determines the income from the operating expenses, bond interests, and dividends under different equity theories of proprietary, entity and residual theory.

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The response addresses the queries posted in 204 words with references.

// There are many theories that are prevailing for net income calculation for owners. Every theory provides different result from each others. Here we will discuss about different ...

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  • MBA (IP), International Center for Internationa Business
  • BBA, University of Rajasthan
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