Final answer:
To calculate the owner's equity, subtract liabilities from assets. With assets of $185,000 and liabilities of $30,000, the owner's equity equals $155,000, making the correct answer B. $155,000.
Step-by-step explanation:
The question is asking to calculate the owner's equity for a company given its assets and liabilities. To find the owner's equity, we use the basic accounting equation which is:Assets = Liabilities + Owner's EquityFrom the information provided, the company has assets worth $185,000 and liabilities worth $30,000.
By rearranging the accounting equation to solve for owner's equity, we get:Owner's Equity = Assets - LiabilitiesOwner's Equity = $185,000 - $30,000Owner's Equity = $155,000Therefore, the correct answer is B. $155,000.The owner's equity can be calculated by subtracting the liabilities from the assets. In this case, the assets are $185,000 and the liabilities are $30,000. Therefore, the owner's equity would be $185,000 - $30,000 = $155,000.