Solution-Would you classify the items below as equity or

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Would you classify the items below as equity or liabilities? State your reason(s) and any assumptions.

a. Minority interest in consolidated financial statements.

b. Appropriated retained earnings.

c. Guarantee for product performance on sale.

d. Convertible debt.

e. Preferred stock.

Both firms sell 10000 units of output at 250 per unit the : firm a has 10000 in assets entirely financed with equity. firm b also has 10000 in assets but these assets are financed

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