Question

Total liabilities and total assets for a company amount to $100,000 and $250,000, respectively. Revenue for the year totaled $300,000. What is the owner's total equity?

a. $250,000
b. $150,000
c. $400,000
d. $650,000

Answer 1

Option (b) is correct.

Step-by-step explanation:

Given that,

Total assets of the company = $250,000

Total liabilities of the company = $100,000

Revenue for the year = $300,000

The owner's total equity is the difference between total assets and total liabilities.

owner's total equity:

= Total assets - Total liabilities

= $250,000 - $100,000

= $150,000