Question

The assets and liabilities of a company are $86,160 and $45,348, respectively. Stockholders' equity should equal

A. $86,160
B. $45,348
C. $131,508
D. $40,812

Answer 1

The stockholders' equity is calculated by subtracting the liabilities from the assets.

Step-by-step explanation:

The stockholders' equity is calculated by subtracting the liabilities from the assets. In this case, the assets are $86,160 and the liabilities are $45,348. To find the stockholders' equity, subtract the liabilities from the assets:

• Stockholders' equity = Assets - Liabilities
• = $86,160 - $45,348
• = $40,812

Therefore, the stockholders' equity is $40,812, so the answer is D. $40,812.