Final answer:
To calculate equity, subtract liabilities from assets. In this case, with $710,000 in assets and $205,000 in liabilities, the company has $505,000 in equity.
Step-by-step explanation:
The question involves the calculation of equity using a company's financial data. We calculate equity by subtracting liabilities from assets. Given that the assets of a company total $710,000 and the liabilities, $205,000, we can find the equity by performing the following calculation:
Equity = Assets - Liabilities
Equity = $710,000 - $205,000
Equity = $505,000
Therefore, the amount of equity the company has is $505,000.