Total assets at the end of the period were $330,000 and liabilities were 25% of owner's equity. Determine owner's equity at the end of the period.
A)$264,000
B)$132,000
C)$462,000
D)$825,000

Question

Quizplus · Accepted Answer

Owner's equity can be calculated using the formula: Total Assets = Liabilities + Owner's Equity. Given that liabilities are 25% of owner's equity, we can set up the equation: $330,000 = 0.25(Owner's Equity) + Owner's Equity. Solving this equation gives us Owner's Equity = $264,000.

Total Assets at the End of the Period Were $330,000