K2 corporation has assets of $2,400,000, common stock of $624,000, and retained earnings of $380,000. what are the creditors' claims on their assets?

Given:
 Assets = $2,400,000
 Common stock = $624,000
 Retained earnings = $380,000
   To calculate: Creditors' claim on assets
   Solution:
 Claim on assets = This includes liabilities and owners' equity.
   Creditors' claim on assets = Assets-Liabilities
    Liabilities in this case is common stock($624,000)and retained earnings($380,000).
   Now, putting values in the formula,
   Creditor's claim on assets = $2,400,000 - $624,000 - $380,000 = $1,396,000
   So, creditors' claim on assets of K2 corporation = $1,396,000