At the beginning of the year,a company had $120,000 worth of liabilities.During the year,assets increased by $160,000 and at year-end they equaled $360,000.Liabilities decreased $20,000 during the year.Calculate the beginning and ending values of equity.

Liabilities

Financial obligations or debts owed by a business to creditors, which must be settled over time through the transfer of assets, provision of services, or other economic benefits.

Assets

Resources owned by a company that have future economic value that can be measured and can be used to generate income.

Equity

The value of an owner’s interest in a property or a company, after all debts and liabilities have been deducted.