Answer: Liabilities =$38,000
Explanation: An asset whether tangible or intangible is a source of value to a company examples are Cash, investments, accounts receivables etc
Liabilities are referred to the debts owed to a company or buisness at a particular period eg bank debts, tax owed, wages owed etc.
Equity is the measure of value of a company"s asset eg Common stock, retained earnings, , preferred stock etc.
The three above are related using the equation below
Assets = Liabilities + Equity.
Total Liabilities = Assets - Equity
Total asset = Cash + Account receivables = 26,000+42,000=68,000
Total equity = Common stock + retained earnings = 18,000+12000=30,000
Total liabilities =Total asset -total equity
= 68,000-30,000
= $38,000
