Answer: $240,000
Explanation:
The Accounting Equation holds that;
Assets = Liabilities + Capital
At the Beginning of the year;
Assets were $151,000
Capital in the form of Equity was $123,000
Liability according to the Accounting Equation would be;
151,000 = Liabilities + 123,000
Liabilities = 151,000 - 123,000
= $28,000
At the end of the year, Liabilities increased by $72,000 and equity is now $140,000.
Assets would now be;
= Liabilities + Capital
= (28,000 + 72,000 ) + 140,000
= $240,000
