Question

On August 1, M. Harris, the owner, invested 6,250 cash and26,875 of photography equipment in the company. What was the total amount invested by M. Harris?

1) $6,250
2) $26,875
3) $33,125
4) $33,125 cash and $26,875 of photography equipment

Answer 1

total amount invested by M. Harris is $33,125.

Thus the correct option is (3).

Step-by-step explanation:

In this scenario, the total amount invested by M. Harris is the sum of the cash investment and the value of photography equipment. The correct answer is (3) $33,125. This calculation is derived by adding the cash investment of $6,250 to the value of the photography equipment, which is $26,875.

When M. Harris invested $6,250 in cash and $26,875 worth of photography equipment into the company on August 1, the total infusion of resources amounted to $33,125. It's important to consider both components of the investment to determine the comprehensive value contributed by M. Harris to the business.

This total investment figure, $33,125, is crucial for assessing the initial financial commitment made by the owner and forms the basis for evaluating the owner's stake in the company. Understanding the composition of the investment, including both cash and non-cash assets like equipment, provides a holistic view of the resources contributed to the business at the outset.

Thus the correct option is (3).