Answered

The ZZZ Corporation issued $25 million in "poration issued $25 million in new common stock in 2013. It used $18 million of the investment: replace obsolete equipment in its factory and $7 million to repay bank loans. As a result,investment:________ . A. of $7 million has occurred. B. of $25 million has occurred. C. of $18 million has occurred. D. has not occurred.

Answer :

Answer:

correct option is C. of $18 million has occurred.

Explanation:

given data

poration issued = $25 million

new common stock = $25 million

investment = $18 million

repay bank loans = $7 million

solution

As here an an investment is an asset or commodity that is earned with the goal of gaining income or appreciation.

In here in the given statement , the total investment used to buy the equipment.

Bank loan repayment is not an investment

so correct option is C. of $18 million has occurred.

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