Question

Use the following information for Meeker Corp. to determine the amount of equity to report. Cash $ 72,000 Buildings 126,500 Land 208,600 Liabilities 131,500 A. $22,600. B. $275,600. C. $407,100. D. $538,600. E. $285,600.

Answer 1

$276,500

Step-by-step explanation:

The computation of the total equity is shown below;

As we know that

Accounting equation is

Total assets = Total liabilities + total stockholder equity

where,

Total assets is

= Cash + land + buildings

= $72,000 + $208,600 + $126,500

= $407,100

And, the total liabilities is $131,500

So, the total stockholder equity is

= $407,100 - $131,500

= $276,500

We simply applied the above formula