As of December 31, 2014, Dolce & Gabanna Inc. had assets of €7,600,000, share capital of €2,800,000 and retained earnings of €3,200,000. Total liabilities as of that date are

Question

Quizplus · Accepted Answer

Total assets (A) = €7,600,000
Share capital (S) = €2,800,000
Retained earnings (E) = €3,200,000

Total stockholders’ equity (SE) = S + E = €2,800,000 + €3,200,000 = €6,000,000

Total liabilities (L) = A - SE = €7,600,000 - €6,000,000 = €1,600,000

Therefore, the correct answer is B) €1,600,000.