Assume a Business Commences Operations with Owners' Contributions of $20

Multiple Choice

Assume a business commences operations with owners' contributions of $20 000 with which it purchases an item of inventory that it later sells for $24 000.If the replacement cost of the inventory at the date of sale is $21 000 the amount the business can distribute and still maintain the same level of operations is:

A) $0
B) $3000
C) $4000
D) $1000