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Krammer Company Has Liabilities Equal to One-Fourth of the Total

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Essay

Krammer Company has liabilities equal to one-fourth of the total assets. Krammer's owner's equity is $45,000. Using the accounting equation, what is the amount of liabilities for Krammer?


Definitions:

Nationalizing Industries

The process by which a government takes control of private industries and transforms them into state-owned enterprises.

Social Security Act

A U.S. law enacted in 1935 that was designed to provide retirement income and assist the unemployed, as well as provide support for the disabled and families with dependent children.

Unemployment Compensation

A government program that provides financial payments to individuals who have lost their jobs through no fault of their own, as a means to alleviate financial hardship during periods of unemployment.

Francis E. Townsend

An American physician who was a prominent advocate for the elderly, known for proposing the Townsend Plan, a precursor to Social Security.

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