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the business was put up from a cash of 200,000 the initial capital of the owner. then 40,000 of the cash was used to purchase an equipment to be used in business. the purchase of equipment resulted in a liability of 20,000. How much are the total assets of the business?​

The Business Was Put Up From A Cash Of 200000 The Initial Capital Of The Owner Then 40000 Of The Cash Was Used To Purchase An Equipment To Be Used In Business T class=

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Madwoman26go

Answer:

Assets

Cash                                                       200,000

Less: Purchase of equipment               (40,000)             160,000

Equipment (40,000+20,000)                                           60,000

Total Assets                                                                        220,000

Liabilities                         20,000

Equity:

Assets                     220,000

Less: Liabilities        20,000

Equity                       200,000

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