Question

If a property is worth $320,000 and has loans of $10,000 against it, the owner's equity is

a) $320,000
b) $310,000
c) $10,000
d) $330,000

Answer 1

The owner's equity in the property is $310,000.

Step-by-step explanation:

Equity is the value of an asset minus any liabilities or debts against it. In this case, the value of the property is $320,000 and there are loans of $10,000 against it. To calculate the owner's equity, we subtract the loans from the property value: $320,000 - $10,000 = $310,000.

Therefore, the owner's equity is $310,000 (option b).