Tracy's Termite Control has a net worth of $750,000.
The assets total $980,235.
Recall that the assets are the sum of liabilities and equity.
[tex]Assets=Liabilities+Equity[/tex]For the given case,
Assets = $980,235
Equity = $750,000
Let us substitute these values into the above formula and solve for liabilities
[tex]\begin{gathered} Assets=Liabilities+Equity \\ 980,235=Liabilities+750,000 \\ Liabilities=980,235-750,000 \\ Liabilities=\$230,235 \end{gathered}[/tex]Therefore, the amount of the liabilities is $230,235
The 4th option is the correct answer.
