Reference no: EM132691909

Question - CHERIE CORP. provided the following account balances on December 31, 2018:

Accounts payable $125,000

Accrued taxes $50,000

Cash surrender value $30,000

Ordinary share capital $1,000,000

Dividends-preference $150,000

Mortgage payable (200,000 due in six months) $1,200,000

Notes payable - 20% (due on January 2, 2019) $1,500,000

Shares premium $250,000

Preference share capital $450,000

Income summary-credit balance $500,000

Accumulated profits - December 31, 2018 $550,000

Unearned rent income $25,000

Dividends-ordinary $100,000

Required - How much should CHERIE CORP. report as shareholders' equity on December 31, 2018?

a) $1,450,000

b) $1,650,000

c) $2,500,000

d) $2,250,000