Question

Determine the following:_______.a. The stockholders' equity of a corporation that has assets of $435,000 and liabilities of $326,000.b. The assets of a corporation that has liabilities of $250,000, common stock of $100,000, and retained earnings of $85,000.

Answer 1

Answer:

a. $109,000

b. $435,000

Explanation:

a. The calculation of Stockholder equity is shown below:-

Stockholder equity = Assets - Liabilities

= $435,000 - $326,000

= $109,000

b. The calculation of assets is shown below:-

Assets = Liabilities + Common stock + Retained earnings

= $250,000 + $100,000 + $85,000

= $435,000

Therefore for computing thr stockholder equity and assets we simply applied the above formula.