Answer:
Amount of Total Liabilities = $6,780
Explanation:
We know that the standard accounting equation is as follows:
Assets = Liabilities + Equity
As with an "=" sign in the equation the left and right side always remains equal.
Thus, for the information provided we have
Increase in assets by $4,200
Decrease in equity by $2,580
Therefore, putting values in equation we have,
+ $4,200 = Liabilities - $2,580
Therefore,
$4,200 + $2,580 = $6,780 = Liabilities
Since the value is positive, there is an increase in value of liabilities by $6,780
