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Rick and Joe get together and start a mortgage brokerage business. They each contribute $25,000 of capital to the business. After the first year of operation, the total owners' equity is listed as $60,
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28 votes
28 votes
Rick and Joe get together and start a mortgage brokerage business. They each contribute $25,000 of capital to the business. After the first year of operation, the total owners' equity is listed as $60,000. Most likely, the additional $10,000 of owners' equity is

User Adam Wagner
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1 Answer

17 votes
17 votes

Answer: a common stock.

Step-by-step explanation:

Following the information given in the question, the additional $10,000 of owners' equity will be regarded as a common stock.

Commission stock is regarded as a corporate equity ownership and each share of stock simply means the holder has a small portion of ownership of that particular company. Every addition in owner's equity is common stock.

User Spstanley
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