If a person starting a business had an investment of a building, valued at $300,000 with an $180,000 outstanding mortgage, the effect would be to:

Name: If a person starting a business had an investment of a building, valued at $300,000 with an $180,000 outstanding mortgage, the effect would be to:
Brand: Quizplus
Rating: 5.0 (54 reviews)

Question

Quizplus · Accepted Answer

The building is an asset valued at $300,000, and the mortgage is a liability of $180,000. The net effect on stockholders' equity is the asset value minus the liability, which is $120,000.

If a Person Starting a Business Had an Investment of a Building