A company has $20,000 cash and $100,000 worth of land.Other assets of the company amount to $300,000.The firm has an outstanding loan of $200,000 and other liabilities adding up to $25,000.What is the owner's equity of the company?

Question

Quizplus · Accepted Answer

A)Total assets = $20,000 + $100,000 + $ 300,000 = $420,000
Total liabilities = $200,000 + $ 25,000 = $225,000
Owners' equity = Assets - Liabilities = $420,000-$225,000 = $195,000
B)Total assets = $20,000 + $100,000 + $ 300,000 = $420,000
Total liabilities = $200,000 + $ 25,000 = $225,000
Owners' equity = Assets - Liabilities = $420,000-$225,000 = $195,000
C)Total assets = $20,000 + $100,000 + $ 300,000 = $420,000
Total liabilities = $200,000 + $ 25,000 = $225,000
Owners' equity = Assets - Liabilities = $420,000-$225,000 = $195,000
D)Total assets = $20,000 + $100,000 + $ 300,000 = $420,000
Total liabilities = $200,000 + $ 25,000 = $225,000
Owners' equity = Assets - Liabilities = $420,000-$225,000 = $195,000
E)Total assets = $20,000 + $100,000 + $ 300,000 = $420,000
Total liabilities = $200,000 + $ 25,000 = $225,000
Owners' equity = Assets - Liabilities = $420,000-$225,000 = $195,000

A Company Has $20,000 Cash and $100,000 Worth of Land