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Question 16 of 20 A scooter rental company is...

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Accounting

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Question 16 of 20 A scooter rental company is attempting to get their business up in America after being successful in Europe. They start with $5 million in equity. The company owners purchase a building for $2 million, and purchase rental scooters for $2 million. They leave $1 million in cash for emergencies that may arise throughout the year. The scooter rental business does very well their first year. Their income from their rentals is $3 million. They pay $500,000 in salaries and $1 million in scooter upkeep. Their only other expense that year was taxes to the government of $500,000. Any profit the company made that year is held this company on their ending balance sheet for the year? O A. $8 million o B. $5 million O C. $3 million D. $6 million

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