Question

Share, Inc., has completed its fiscal year and reported Total Assets of $1,000,000 and Total Liabilities of $300,000. Calculate the value of common equity $800,000 $1,300,000 $700,000 $600.000

Answer 1

The value of common equity for Share, Inc. is calculated using the accounting equation and is found to be $700,000 by subtracting Total Liabilities from Total Assets. Option C

Step-by-step explanation:

To calculate the value of common equity for Share, Inc., we use the basic accounting equation which states that Assets = Liabilities + Equity. According to the information provided, Share, Inc. has Total Assets of $1,000,000 and Total Liabilities of $300,000.

Using the formula, we can find the Equity by subtracting the Total Liabilities from the Total Assets:

Equity = Assets - Liabilities = $1,000,000 - $300,000 = $700,000.

Therefore, the value of common equity for Share, Inc. is $700,000. Option C