Final answer:
Equity can be calculated by subtracting the amount owed in debt from the current market value of the property.
Step-by-step explanation:
The correct option that summarizes how equity can be calculated is Option B: Value minus debt equals equity.
Equity represents the ownership interest in a property, and it is calculated by subtracting the amount owed in debt from the current market value of the property. For example, if the value of a house is $200,000 and the homeowner owes $180,000 to the bank, the equity would be $20,000.
Equity can increase over time as the value of a property appreciates and the debt owed decreases through mortgage payments.