What was shareholders' equity as of December 31, 2013?
A)$7,020,000.
B)$6,440,000.
C)$6,420,000.
D)$6,400,000.

Question

Quizplus · Accepted Answer

Shareholders' equity can be calculated by subtracting total liabilities from total assets. As per the data given in the question, total assets are $14,800,000 and total liabilities are $8,380,000. Therefore, shareholders' equity can be calculated as follows:

Shareholders' equity = Total assets - Total liabilities 
Shareholders' equity = $14,800,000 - $8,380,000 
Shareholders' equity = $6,420,000

Hence, the correct answer is choice letter C.

What Was Shareholders' Equity as of December 31, 2013