If assets are 20000 and liabilities are 12000 stockholders

Question

Question: The accounting equation is:

Assets = Liabilities + Stockholders' Equity

Therefore, if assets are $20,000 and liabilities are $12,000, stockholders' equity is $8,000, as indicated in the following computation:

Assets = Liabilities + Stockholders' Equity

+ $20,000 = +$12,000 + Stockholders' Equity

+ $20,000 - $12,000 = Stockholders' Equity

+ $8,000 = Stockholders' Equity