Enclosed is an assignment which I am trying to understand.
Individual Project
Examine the following document: 
 	Revenues 	 	 	$	1,000,000 
 	Operating expenses	 	 	 	 
 	     Cost of goods sold 	$	400,000 	 	 
 	     Depreciation  	 	100,000 	 	 
 	     Salaries and wages 	 	200,000 	 	 
 	Bond interest (8% debentures sold at 	 	 	 	80,000 
 	     maturity value of $1,000,000)	 	 	 	 
 	Dividends declared on 6% preferred stock	 	 	 	30,000 
 	     (par value $500,000)  	 	 	 	 
 	Dividends declared of $5 per share on	 	 	 	100,000 
 	     common stock (20,000 shares outstanding   a par value of $100
per share)
Based on this information you are to complete the following tasks:
1.	Determine the income under each of the following equity theories: 
o	Proprietary theory.   Assets-Liabilities = Owners? Equities
o	Entity theory (orthodox view): 
o	Entity theory (unorthodox view): Assets= Equities (including liabilities)
o	Residual theory: Assets ? Specific Equities (including liabilities
and preferred stock) = Residual Equity
2.	Would any of your answers change if the preferred stock is
convertible at any time at the ratio of 2 preferred shares for 1 share
of common stock?
?	Submit your work to your instructor via the drop box.

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Request for Question Clarification by scriptor-ga on 28 Jul 2005 18:05 PDT

Google Answers discourages and may remove questions that are homework
or exam assignments.

Scriptor

purchaser:
If, as I am thinking, you are requesting for help (like formulas and
concepts) to do your assignement and not a researcher to do your
homework for you, your question is valid.

scriptor: 
unfounded accusations could be disagreeable for the asker, it is
always better ask for the actual intentions of the costumer than do a
wrong and annoying presumptions, I saw many times in the past comments
like yours a lot of times and in most cases are groundless.r

Dear edithcen,

I have not accused the customer of anything. But should none of my
colleagues answer the question, or should it be removed, the customer
has a right to know the reason why. So I had to point out the Google
Answers policy concerning homework and exam questions.

Scriptor

This does sound like homework to me. Submit your work to your
instructor via the drop box??? Scriptor has all the rights to make
sure that all users, old or new unnderstand that there are rules and
regulations that are clearly stipulated that make sure that this site
runs smoothly.