For a corporation:¤Assets = Liabilities + Stockholders’ equity.¤Assets = Liabilities + Paid-in-capital + Retained earnings.

The equation you provided is the fundamental concept of double-entry bookkeeping, which is the basis of all accounting. It's known as the accounting equation or balance sheet equation.

Here's a step-by-step breakdown:

1. Assets: These are what a company owns, such as cash, inventory, buildings, equipment, and investments.

2. Liabilities: These are what a company owes to others, such as loans, accounts payable, salaries payable, and bonds payable.

3. Stockholders' Equity: This is the owners' claim to the assets of the business. It's what's left over after you subtract liabilities from assets.

4. Paid-in Capital: This is the amount of money that shareholders have paid into the company in exchange for shares of stock. It's a part of Stockholders' Equity.

5. Retained Earnings: These are the profits that a company has earned and kept in the business rather than paying them out as dividends. It's also a part of Stockholders' Equity.

So, the equation can be rewritten as:

Assets = Liabilities + (Paid-in Capital + Retained Earnings)

This equation must always be in balance. If it's not, it means there's an error in the accounting records.