Explore BrainMass

Explore BrainMass

    Proprietary theory- entity theory- Residual theory

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Examine the following documents:
    Revenues---------------------------------------------------------------- $1,000,000
    Operating expenses
    -Cost of good sold ------------------------ $400,000
    -Depreciation------------------------------ $100,000
    - Salaries and Wages----------------------$200,000
    Bond interest (80%debentures sold at maturity
    value of $100,000)----------------------------------------------------------$80,000
    Dividend declared on 6%preferred stock (per value $500,000)--------$30,000
    Dividends declared of $5 per share on common stock
    (20,000 shares outstanding -----------------------------------------------$100,000
    Based on this information you are to complete:
    Determine the income under each of the following equity theories:
    Proprietary theory- entity theory- Residual theory

    © BrainMass Inc. brainmass.com December 15, 2020, 12:29 pm ad1c9bdddf

    Solution Summary

    Income is determined under Proprietary theory, entity theory- and Residual theory. The steps and solution are given in word file.