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In 2017 Robot Inc. reported total assets as $15,750 and total liabilities as $7,560. You must show your calculations and answer both A) and B) correctly to receive full credit for this question.
Question A) Use the accounting equation to solve for the amount of equity in 2017.
Question B) If in 2018, Robot's assets increase by $3,000 and the equity decreases by $1,950, what will be the amount reported for liabilities in 2018?
1.Refer to KTM's 2011 balance sheet in Appendix A near the end of the book. Confirm that its total assets equal its total liabilities plus total equity.
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