Answer:
Liabilities = $400
Explanation:
The basic accounting equation that is used states that the value of total assets is always equal to the value of the sum of total liabilities and total equity. The we can state the equation as,
Assets = Liabilities + Equity
To calculate the value of liabilities, we input the available value of assets and equity in the equation.
1000 = Liabilities + 600
1000 - 600 = Liabilities
Liabilities = $400
