From the following information taken from the records of Peach Company at December 31 of this year,calculate equity.

Question

Quizplus · Accepted Answer

Equity is calculated as follows: 
Equity = Total Assets - Total Liabilities

From the given information, we can calculate the total assets and total liabilities as follows:

Total Assets = $10,000 + $5,000 + $5,000 = $20,000 
Total Liabilities = $5,000 + $2,500 + $5,000 = $12,500

Therefore, Equity = $20,000 - $12,500 = $7,500

Thus, the correct answer is C.

From the Following Information Taken from the Records of Peach