Question

5 points eBookPrintItem 3 At the end of last year, the company's assets totaled $870,000 and its liabilities totaled $745,000. During the current year, the company's total assets increased by $59,000 and its total liabilities increased by $24,500. At the end of the current year, stockholders' equity was:

Answer 1

Answer:

$159,500

Explanation:

The computation of the ending stockholder equity at the current year is given below:

As we know that

Total assets = Total liabilities + stockholder equity

Now both are increased by some amount, so the ending stockholder equity at the current year is

= ($870,000 + $59,000) - ($745,000 + $24,500)

= ($929,000) - ($769,500)

= $159,500