The assets and liabilities of a company are $128,000 and $84,000, the . stockholders' equity should equal $ 44,000
Fairness represents the cost that would be lower back to a business enterprise's shareholders if all the property had been liquidated and all the business enterprise's debts have been paid off. We also can think about equity as a degree of residual possession in a company or asset after subtracting all money owed related to that asset.
Stocks are called equities due to the fact they represent ownership in companies. They let traders benefit from increase however additionally have hazard when enterprise situations weaken. subsequent time, we'll discover the differences among shares and bonds
Calculation;
Accounting Equation,
Assets = Liabilities + Stockholder's Equity
$ 1,28,000 = $84,000 + Stockholder's Equity
Stockholder's Equity = $128000 - $84000
Stockholder's Equity = $ 44,000
Hence, the . stockholders' equity should equal = $ 44,000
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