At the beginning of the period, assets were $490,000 and stockholders' equity was $240,000. During the year, assets increased by $60,000, liabilities increased by $40,000, and stockholders' equity increased by $20,000. Beginning liabilities must have been:

Question

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Beginning liabilities can be calculated using the accounting equation: Assets = Liabilities + Stockholders' Equity. Initially, $490,000 = Liabilities + $240,000, so Liabilities = $250,000.

At the Beginning of the Period, Assets Were $490,000 and Stockholders