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Bubba's margin account has securities valued at $20,000 and an $8,000 credit balance.
What is the equity in Bubba's account?
Suggested Answer: D
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$28,000. The equity is the market value plus the credit balance.
12 comments · newest first
VI
Vivienne
1 year ago
Definitely $12,800, no doubt!
DE
Devora
1 year ago
Wait, are you sure about that calculation?
RO
Rosio
1 year ago
I thought it would be higher than that!
BR
Brynn
1 year ago
So it's $12,800, right?
AI
Ailene
1 year ago
Equity is calculated as total securities minus credit balance.
IE
Iesha
1 year ago
I feel like I might be mixing up the terms. Is the credit balance considered a liability? If so, then I guess the equity would be $12,000, but I'm not completely sure.
RI
Rima
1 year ago
I practiced a similar question where we had to find equity, and I think the answer was always the total value minus liabilities. I hope that applies here too!
XE
Xenia
1 year ago
I think the equity is the total value minus the credit balance, so it should be $20,000 - $8,000, which is $12,000, right?
ON
Oneida
1 year ago
I remember we calculated equity by subtracting the credit balance from the total value of securities, but I'm not sure if I got the numbers right.
CO
Cornell
1 year ago
I'm a bit confused by this question. Is it about ensuring all routers run iBGP inside the transit AS? I'll have to review my notes on iBGP before answering.
LO
Lorita
1 year ago
Whoa, this is a tricky one. I'm going to need to really focus and think through the best practices for JavaScript accounting systems to figure out which line needs to be changed.
LI
Lizbeth
1 year ago
I remember learning about this in class, but I'm drawing a blank right now. I'll have to eliminate the options that don't sound correct.