Final answer:
Using the basic accounting equation, Assets = Liabilities + Owner's Equity, and the provided total assets of $270,000 and total liabilities of $202,500, the total owner's equity is calculated to be $67,500.
Step-by-step explanation:
When calculating the owner's equity in a business, one typically uses the basic accounting equation which is: Assets = Liabilities + Owner's Equity.
In the question provided, we have been given that the total assets equal $270,000 and the total liabilities equal $202,500. To find the total owner's equity, we need to rearrange the equation to solve for equity, meaning the equation becomes Owner's Equity = Assets - Liabilities.
Applying these values to the equation, we get:
Owner's Equity = $270,000 (Total Assets) - $202,500 (Total Liabilities)
This calculation results in the Owner's Equity being:
Owner's Equity = $67,500
Therefore, the total owner's equity must equal $67,500.