Final answer:
The stockholders' equity of Bangkok Corp. on January 1, 2020, can be calculated using the accounting equation 'Assets = Liabilities + Stockholders' Equity'. After rearranging the equation, the calculation is $8,850 (assets) - $4,860 (liabilities) = $3,990, which is stockholders' equity.
Step-by-step explanation:
To calculate the stockholders' equity on January 1 for Bangkok Corp. for the year 2020, we need to use the accounting equation which states that Assets = Liabilities + Stockholders' Equity. From the data provided, we have the assets and liabilities at the beginning of 2020.
Assets on January 1, 2020 = $8,850
Liabilities on January 1, 2020 = $4,860
We can rearrange the accounting equation to solve for stockholders' equity:
Stockholders' Equity = Assets - Liabilities
By substituting the given values into the equation, we get:
Stockholders' Equity on January 1, 2020 = $8,850 - $4,860 = $3,990
Therefore, the stockholders' equity at the beginning of January 2020 would be $3,990, which corresponds to option (a).