Question

montreal fabrication has $80 million in assets and $50 million in owners' equity. how much does the firm have in liabilities?

Answer 1

Montreal Fabrication has $30 million in liabilities, which is calculated by subtracting the owner's equity of $50 million from the total assets of $80 million.

Step-by-step explanation:

To calculate the amount that Montreal Fabrication has in liabilities, we use the basic accounting equation:

Assets = Liabilities + Owner's Equity

According to the information provided:

• Assets = $80 million
• Owner's Equity = $50 million

Using the equation:

$80 million = Liabilities + $50 million

To find the liabilities:

Liabilities = $80 million - $50 million

Liabilities = $30 million

So, Montreal Fabrication has $30 million in liabilities.