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Tania08
At the beginning of the year, Addison Company's assets are $273,000 and its equity is $204,750. During the year, assets increase $80,000 and liabilities increase $42,000. What is the equity at the end of the year?
The formula for "equity" is assets - liabilities?
Assets- liability= equity Let's find the liability at the beginning of the year 273000-liability=204750 liabilities=$68250 Now assets increase 80,000 so Present assets =273000+80000=$351000 Liabilities increased by 42000 Present Liabilities = 68250+42000= $110250 Equity=Assets-Liabilities Equity=351000-110250= $240750
Hope you get the help Tania08
So the answer is $240750