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10 August, 07:30

If the assets of a business increased $89,000 during a period of time and its liabilities increased $67,000 during the same period, equity in the business must have:

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  1. 10 August, 08:46
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    equity in the business increase by $22000

    Explanation:

    given

    assets increased = $89,000

    liabilities increased = $67,000

    solution

    equity in the business increase by $22000

    because we know that by the accounting equation

    assets is equal to liability + shareholder equity ... 1

    so when assets is increase then increase in shareholder or liability or increase in combination or decrease in asset

    so here given assets increase $89000

    so it must be as per given liability increase by $67000

    so balance will be = $89000 - $67000 = $22000

    it will either increase equity or the decrease in another assets

    so here equity in the business increase by $22000
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