Question

Stilton Company's Canadian subsidiary started operations in 2024 with assets of 132,000 CAD and liabilities of 54,000 CAD. What's the equity of the Canadian subsidiary?

A) CAD 78,000
B) CAD 186,000
C) CAD 78,000
D) CAD 258,000

Answer 1

To calculate the equity of Stilton Company's Canadian subsidiary, subtract the liabilities (54,000 CAD) from the assets (132,000 CAD), resulting in 78,000 CAD, which is option A).

Step-by-step explanation:

The subject of the question is related to determining the equity of a company, which is a common calculation in the field of Business and accounting. In this case, the equation to find the equity of Stilton Company's Canadian subsidiary is by subtracting the total liabilities from the total assets. The formula is represented as Equity = Assets - Liabilities.

According to the data provided:

• Assets = 132,000 CAD
• Liabilities = 54,000 CAD
• Equity = Assets - Liabilities = 132,000 CAD - 54,000 CAD = 78,000 CAD

Therefore, the correct answer is A) CAD 78,000.