If a company has assets of $5,000,000, liabilities of $3,000,000, and retained earnings of $1,200,000, how much is total stockholders' equity?
A)$ 800,000
B)$2,000,000
C)$3,800,000
D)$1,800,000

Question

Quizplus · Accepted Answer

Total stockholders' equity can be calculated as: 
Total assets - Total liabilities = Stockholders' equity
$5,000,000 - $3,000,000 = $2,000,000, which is the value of the stockholders' equity.

If a Company Has Assets of $5,000,000, Liabilities of $3,000,000