The assets of the business comprise of P100,000 cash and P900,000 landand building. The land and building has unpaid mortgage payable, theonly liability of the business. The owner's equity is P650,000. How muchis the business liability?

Total Assets=Cash+Land & Building=P 100,000+P 900,000=P 1,000,000

Answered: The assets of the business comprise of…

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter24: Bankruptcy, Reorganization, And Liquidation

Section: Chapter Questions

Problem 1P: Southwestern Wear Inc. has the following balance sheet: The trustees costs total 281,250, and the...

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The assets of the business comprise of P100,000 cash and P900,000 land and building. The land and building has unpaid mortgage payable, the only liability of the business. The owner's equity is P650,000. How much is the business liability?