$600,00 is the Stakeholder Equity Balance.
Stakeholder Equity Balance = Total Assets - Total Liabilities
= $1,000,000 - $400,000
= $600,000
The balance sheet account for stockholders' equity, sometimes referred to as shareholders equity is made up of share capital plus retained earnings. It also symbolizes the difference between the value of assets and obligations. Assets = Liabilities + Stockholders Equity is the original accounting formula, however, it can also be written as
Stockholders Equity = Assets - Liabilities.
Components of the stakeholder Equity are:
Therefore, $600,000 is the stakeholder equity balance.
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