The following information applies to questions 23 and 24.
Kucinta Manufacturing Company started operations with the following capital:

-What is the amount of debt financing for this partnership?
A) $5000
B) $45 000
C) $20 000
D) $15 000

Question

The following information applies to questions 23 and 24.
Kucinta Manufacturing Company started operations with the following capital:
 
-What is the amount of debt financing for this partnership?
A) $5000 
B) $45 000 
C) $20 000 
D) $15 000

Quizplus · Accepted Answer

The amount of debt financing can be calculated by subtracting the total equity from the total capital, which is $40 000 - $20 000 = $20 000. Therefore, the correct choice is C.

The Following Information Applies to Questions 23 and 24