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Sagot :
Chester's book value is $83722000
Book Value = Assets - Liabilities
Change in Book Value = Change in Assets - Change in Liabilities
Assets increase by $4,000,000
Change in Assets = $4,000,000
Liabilities decrease by $2,000,000
Change in Liabilities = -$2,000,000
Change in Book Value = $4,000,000 - $2,000,000 = $2,000,000
Book Value = $85,722,000 - $2,000,000 = $83,722000
Book value of equity refers to the difference of total assets and total liabilities of a company. It represents the total value of a company's common stockholders .
It is commonly referred to as the residual claim by stockholders on a company's assets after the disposal of liabilities. This is also apparent to the Accounting Equation whereby total assets equal to liabilities plus shareholder's equity.
To know more about book value here:
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