Answer:
$4,400,000
Explanation:
A balance sheet is a statement showing the financial position of a business as at a particular date. At all time the Asset of a business must be equal Liabilities + Owners' Equity. i.e Assets = Liabilities + Owners' Equity.
In the case of Hotela's balance sheet
Asset= $ 6,400,000
Equity = $2,000,000
Liabilities = ?
Going by the accounting equation Assets = Liabilities + Owners' Equity.
To calculate liabilities the formula below will be used
Liabilities = Asset - Owners' equity
Therefore Liabilities = $6, 400,000 - $2,000,000 = 4,400,000
Hence the answer is 4,400,000
