Answer and Explanation:
The computation of the shareholder equity for each case is shown below:
a. For case one
As we know that
Total assets = Total liabilities + stockholder equity
$9,900 = $10,700 + stockholder equity
So, the stockholder equity is
= $10,700 - $9,900
= $800
b. For case two
Total assets = Total liabilities + stockholder equity
$9,990 = $10,700 + stockholder equity
So, the stockholder equity is
= $10,700 - $9,990
= $710
