Question

Malden corporation has assets of $1,000,000 and liabilities of $400,000. What is its stockholder equity balance?

Answer 1

$600,00 is the Stakeholder Equity Balance.

Stakeholder Equity Balance  = Total Assets - Total Liabilities

                                                 = $1,000,000 - $400,000

                                                 = $600,000

What is Stakeholder Equity?

The balance sheet account for stockholders' equity, sometimes referred to as shareholders equity is made up of share capital plus retained earnings. It also symbolizes the difference between the value of assets and obligations. Assets = Liabilities + Stockholders Equity is the original accounting formula, however, it can also be written as

Stockholders Equity = Assets - Liabilities.

Components of the stakeholder Equity are:

• Share Capital is the term used to describe funds that the reporting company receives from transactions with its owners.

• Retained Earnings are income-derived quantities also known as Accumulated Other Comprehensive Income and Retained Earnings (for IFRS only).

• Dividends and Net Income: Dividend payments lower retained profits while net income increases them.

Therefore, $600,000 is the stakeholder equity balance.

For more information on Stakeholder Equity balance, refer to the given link:

brainly.com/question/24601429

#SPJ4