Which of the following is correct if at the end of Crystal Imports' first year of operations, Assets are $800,000 and Owners' Equity is $720,000?
A. The owner(s) must have invested $800,000 to start the business.
B. The business must be operating profitably.
C. Liabilities are $80,000.
D. Liabilities are $1,520,000.
C
800,000(Assets) - $720,000(Owners' Equity) = $80,000 (Liabilities)
Business
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