Final answer:
The equity section of a statement of financial position for investor-owned colleges represents the residual ownership interest in the college's assets after liabilities are deducted, typically including common and preferred stock and retained earnings.
Step-by-step explanation:
The equity section of the statement of financial position (also known as the balance sheet) for investor-owned colleges represents the owner's residual interest in the assets of the college after deducting liabilities. Put differently, it is what the owners would be left with if all assets were liquidated and all liabilities paid off. For an investor-owned college, this section would typically include items such as common stock, retained earnings, and may also include preferred stock if applicable.
Given the following information: assets - reserves 30, bonds 50, and loans 50; liabilities - deposits 300 and equity 30, the equity for the college is 30. This figure is derived from the accounting equation, Assets = Liabilities + Equity, which in this case would translate to 30 = 300 (liabilities) + 30 (equity).