Siskiyou,Inc.has total current assets of $1,200,000; total current liabilities of $500,000; long-term assets of $800,000; and long-term debt of $600,000.How much is the firm's total equity?
A) $1,200,000
B) $800,000
C) $900,000
D) $2,000,000

Question

Quizplus · Accepted Answer

Total Equity can be calculated as Total Assets minus Total Liabilities. 
Total Assets = $1,200,000 + $800,000 = $2,000,000. 
Total Liabilities = $500,000 + $600,000 = $1,100,000. 
Total Equity = Total Assets - Total Liabilities = $2,000,000 - $1,100,000 = $900,000. 
Therefore, the best choice is C.