If Boward Co.has Common Stock of $40,000,total assets of $85,000,and total liabilities of $35,000,its Retained Earnings equals:

Name: If Boward Co.has Common Stock of $40,000,total assets of $85,000,and total liabilities of $35,000,its Retained Earnings equals:
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Question

Quizplus · Accepted Answer

Assets = Liabilities + Stockholders' Equity
Assets = Liabilities + (Common Stock + Retained Earnings)
Retained Earnings = Assets − Liabilities − Common Stock
= $85,000 − $35,000 − $40,000
= $10,000