If total liabilities are $85 000, total assets are $240 000 and total paid-up capital is $120 000, the amount of retained earnings is:

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The amount of retained earnings can be calculated using the accounting equation: Assets = Liabilities + Shareholders' Equity. Here, Shareholders' Equity includes both paid-up capital and retained earnings. So, if total assets are $240,000 and total liabilities are $85,000, then Shareholders' Equity = $240,000 - $85,000 = $155,000. If the paid-up capital is $120,000, then the retained earnings are $155,000 - $120,000 = $35,000.

If Total Liabilities Are $85 000, Total Assets Are $240