Answered

Dimeback, inc., is obligated to pay its creditors $5,800 during the year. (leave no cells blank - be certain to enter "0" wherever required.

A

what is the market value of the shareholders' equity if assets have a market value of $7,100?

market value

$

B

what is the market value of the shareholders' equity if assets equal $5,200?

market value

Verified Answer :

taskmasters
AThe market value of the equity if the asset is 7100 is
7100 - 5800 = 1300
b. The market value of the equity if the asset is 5200 is
5200 - 5800 = -600
A negative equity means that the company is in debt.

Answer:

a. 1300

b. 0

Explanation:

a. 7100 - 5800 = 1300

b. If there is no profit, the shareholders make no money. Therefore, 0.

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