Question

The total assets of Crane Company are 200,000 and its owner's equity is 86,000. What is the amount of its total liabilities?

Answer 1

To find the amount of total liabilities, you can use the accounting equation: Total Assets = Total Liabilities + Owner's Equity. In this case, the total assets are given as $200,000 and the owner's equity is given as $86,000. To find the total liabilities, you can rearrange the equation: Total Liabilities = Total Assets - Owner's Equity. Substituting the given values, the total liabilities would be $114,000.

Step-by-step explanation:

To find the amount of total liabilities, you can use the accounting equation:

Total Assets = Total Liabilities + Owner's Equity

In this case, the total assets are given as $200,000 and the owner's equity is given as $86,000. To find the total liabilities, you can rearrange the equation:

Total Liabilities = Total Assets - Owner's Equity

Substituting the given values, the total liabilities would be $200,000 - $86,000 = $114,000.