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What are the liabilities if assets are 35 million and owner's equity is 25 million?

Accounting

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Step-by-step solution

5 steps

  1. Recall the basic accounting equation.

    The basic accounting equation states that:

    Assets=Liabilities+Owner’s Equity\text{Assets} = \text{Liabilities} + \text{Owner's Equity}

  2. Identify the given values from the problem.

    • Assets = 35 million35 \text{ million}
    • Owner's Equity = 25 million25 \text{ million}

  3. Rearrange the accounting equation to solve for Liabilities.

    Liabilities=Assets−Owner’s Equity\text{Liabilities} = \text{Assets} - \text{Owner's Equity}

  4. Substitute the given values into the rearranged equation.

    Liabilities=$35 million−$25 million\text{Liabilities} = \$35 \text{ million} - \$25 \text{ million}

  5. Calculate the value of Liabilities.

    Liabilities=$10 million\text{Liabilities} = \$10 \text{ million}

    The final answer is \boxed{\text{\10 million}}$

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