Answer:
The Firm's Total Liabilities is $450
Explanation:
Use the accounting equation to calculate the Total Liabilities
Total Assets = Total Equity + Total Liabilities
Now rearrange the accounting equation to make the required formula
Total Liabilities = Total Assets - Total Equity
Where
Total Assets = $500
Total Equity = $50
Placing values in the formula
Total Liabilities = $500 - $50
Total Liabilities = $450
