At the end of last year, the company's assets totaled $877,000 and its liabilities totaled $748,500. During the current year, the company's total assets increased by $59,700 and its total liabilities increased by $24,850. At the end of the current year, stockholders' equity was:

Question

Jeffrey Deleon

Business

10 May, 20:54

At the end of last year, the company's assets totaled $877,000 and its liabilities totaled $748,500. During the current year, the company's total assets increased by $59,700 and its total liabilities increased by $24,850. At the end of the current year, stockholders' equity was:

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Answers (1)

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Athena · Answer 1

The options are:

A $34,850.

B $163,350.

C $128,500.

D $188,200.

$ 163,350.00, option B is correct

Explanation:

At the beginning of the current year, the stockholders equity is the difference between total assets of $877,000 and total liabilities of $748,500 i. e $128,500.

However, the increase or decrease to stockholders' equity in the current year is the difference between increase in total assets of $59,700 and the the increase in liabilities of $24,850 i. e $ 34,850.00

Hence stockholders' equity=the initial stockholders' equity+increase=$128,500+$ 34,850=$ 163,350.00