Equity Theories

Scenario
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 a maturity value of $1,000,000<Tab/>$80,000
Dividends declared on 6% preferred stock (par value $500,000)<Tab/>$30,000
Dividends declared of $5 per share on common stock (20,000 shares outstanding)<Tab/>$100,000
Based on this information you are to complete the following tasks:
1. Determine the income under each of the following equity theories:…