The Owner's Equity of Logan's Company is equal to one-quarter of the total assets.Liabilities equal $60,000.What is the amount of Owner's Equity?
A)$40,000
B)$20,000
C)$30,000
D)None of these answers are correct.

Question

Quizplus · Accepted Answer

Owner's Equity is one-quarter of total assets. If liabilities are $60,000, then total assets are $80,000 (since liabilities + owner's equity = total assets). Therefore, Owner's Equity is $20,000 (one-quarter of $80,000).

The Owner's Equity of Logan's Company Is Equal to One-Quarter