Question

A company has $410,000 in assets and $250000 in liabilities, what is the amount of the company shareholder equity?A. $80,000B. $120,000C. $160,000D. $660,000

Answer 1

We are given the total assets amounting to $410,000 and the total liabilities amounting to $250,000.

The accounting equation states that the total assets is equal to the total liabilities plus the owners' equity.

`A=L+OE`

So to fin the shareholder equity, we just subtract $410,000 - $250,000 and we get $160,000 as the answer.