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@Golfer2016 wrote:

On the balance sheet, after the first year it shows $80,000 of assets.  However, the equity shows $100,000 of additional paid in capital.  It's out of balance.

 

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I'm clueless about Balance Sheets, so I probably should keep quiet, but ...

If you claimed $20,000 of depreciation, doesn't that reduce Retained Earnings by $20,000?  Therefore balancing it out?

Again, I tend to be clueless in this regard, but I'm just throwing out a thought.