Answer:
$38,000
Explanation:
The accounting equation shows the relationship between the various elements of the balance sheet which are assets, liabilities and equity. The equation is as shown below;
Assets = Liabilities + Equity
At the beginning of 20x6
$25,000 = liabilities + $16,000
Liabilities = $25,000 - $16,000
= $9,000
If liabilities increases by $8,000
At the end of 20x6,
Liabilities = $9,000 + $8,000
= $17,000
Total Assets = $17,000 + $21,000
= $38,000
