The equity of the owner of a van that cost 32,000, who owe 8,400 on an installment loan payable to the bank?

Question

How would you solve this with the fundamental accounting equation?
Assets=Liabilities+Owner Equity

Answer 1

Assuming that when you say the van costs $32,000, that the van is actually currently worth 32,000:

Assets = $32000 (value of van)
Liability = $8400 (amt. of loan)

A = L + E
E = A - L
E = 32,000 - 8400 = $23,600