Question: Use the accounting equation to answer each question below. 1. The assets of Aaron Company are $240,000, and the liabilities are $900,000. What is the

Use the accounting equation to answer each question below.

1. The assets of Aaron Company are $240,000, and the liabilities are $900,000. What is the amount of the owner’s equity?

2. The liabilities of Oak Company equal one-fifth of the total assets. The owner’s is $40,000. What is the amount of the liabilities?


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