Question

Brooks invested 190,000 cash along with28,000 in office equipment in the company in exchange for common stock. What is the total value of the investment?

1) $218,000
2) $218,500
3) $218,800
4) $219,000

Answer 1

Brook's total investment in the company, which includes both cash and office equipment in exchange for common stock, is valued at $218,000.

Step-by-step explanation:

The total value of Brook's investment in the company, combining cash and office equipment in exchange for common stock, is calculated by adding the value of the cash investment to the value of the office equipment. We have $190,000 in cash and $28,000 worth of office equipment, so their sum would be:

$190,000 (cash) + $28,000 (office equipment) = $218,000 (total investment)

Therefore, the total value of Brook's investment in the company is $218,000.