kwilkmagee2280 kwilkmagee2280
  • 13-01-2018
  • Business
contestada

Assets are 300,000 and equity is 100,000, assets increase 80,000 liabilities increase 50,000. what is equity at year end?

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Kalahira
Kalahira Kalahira
  • 26-01-2018
Assets - equity = liabilities
  So liability before the increase is:
 300, 000 - 100, 000 = 200, 000
 And if assets increases by 80, 000. Hence new assets = 380, 000. Liabilities increases by 50, 000; hence new liability = 250, 000.
 New Equity = New Assets - New liability.
 New Equity = 380, 000 - 250, 000 = 130, 000.
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