Question

Tracy's Termite Control has a net worth of $750,000. The assets total $980,235. Find the amount of the liabilities.$1,730,235$730,235$229,765$230,235None of these choices are correct.

Answer 1

Tracy's Termite Control has a net worth of $750,000.

The assets total $980,235.

Recall that the assets are the sum of liabilities and equity.

`Assets=Liabilities+Equity`

For the given case,

Assets = $980,235

Equity = $750,000

Let us substitute these values into the above formula and solve for liabilities

`\begin{gathered} Assets=Liabilities+Equity \\ 980,235=Liabilities+750,000 \\ Liabilities=980,235-750,000 \\ Liabilities=\$230,235 \end{gathered}`

Therefore, the amount of the liabilities is $230,235

The 4th option is the correct answer.