Assume that a business's balance sheet reports total assets of $500,000 and total liabilities of $300,000. Now assume that $20,000 of net fixed assets (net plant and equipment) are written off due to technological obsolescence. All else the same, what is the total equity of the business after the write-off.
A. $200,000
B. $190,000
C. $180,000
D. $170,000
E. There is insufficient information given to answer this question.
Answer: C. $180,000
Business
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Indicate whether the statement is true or false
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The costs incurred by merchants in having to change product prices (such as the costs of reentering prices into computer systems) are referred to as which of the following?
A) subscription costs B) fixed costs C) menu costs D) variable costs
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