Tom and Lynn Get Together and Start a Mortgage Brokerage

Multiple Choice

Tom and Lynn get together and start a mortgage brokerage business.They each contribute $25,000 of capital to the business.After the first year of operation,the total owners' equity is listed as $60,000.Most likely,the additional $10,000 of owners' equity is

A) common stock.
B) long-term liabilities.
C) current liabilities.
D) retained earnings.
E) a bank loan.