Answer:
1. $6,720
2. $17,530
Explanation:
In this question, we use the accounting equation which is shown below:
Total assets = Total liabilities + Stockholder's equity
1. The equity value is computed by
$15,400 - $8,680 = Stockholder's equity
So, stockholder equity is $6,720
2. Since assets is assets is increased by $5,000 and the equity is decreased by $3,850
So, updated assets = $15,400 + $5,000 = $20,400
And, the updated equity is $6,720 - $3,850 = $2,870
So, the total liabilities equal to
= $20,400 - $2,870
= $17,530
