Chandler Corporation had assets equal to $330,500 and liabilities equal to $250,250 for a recent year-end. What was the total equity for Chandler's business at year-end?

Question

BlackTom AI · Accepted Answer

First, identify the financial relationship at year-end: Assets minus Liabilities equals Equity.

Step 1: Note the given figures. Assets = 330,500 and Liabilities = 250,250. 
Step 2: Perform the subtraction to find equity: 330,500 − 250,250 = 80,250.

Step 3: Interpret the result. Equity represents the owners’ claim on the company after liabilities are settled; it should be a nonnegative number here.

Step 4: Compare with the provided answer. The listed answer 80,350 differs from the calculated 80,250 by 100, which indicates a miscalculation in the provided answer.

Step 5: Quick check to confirm: The equation Assets = Liabilities + Equity, rearranged as Equity = Assets − Liabilities, is the standard method to determine equity, and applying it yields 80,250.

If you’re entering this into a worksheet, ensure you input 80,250 (not 80,350).

Chandler Corporation had assets equal to $330,500 and liabilities equal to $250,250 for a recent year-end. What was the total equity for Chandler's business at year-end?

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