Clean and Fresh Laundromat has assets of $120,000 and liabilities of $35,000. Determine the amount of owner's equity.

Name: Clean and Fresh Laundromat has assets of $120,000 and liabilities of $35,000. Determine the amount of owner's equity.
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Question

Quizplus · Accepted Answer

The amount of owner's equity can be found by subtracting the liabilities from the assets:

Owner's Equity = Assets - Liabilities

Owner's Equity = $120,000 - $35,000

Owner's Equity = $85,000

Therefore, the correct answer is C) $85,000.

Clean and Fresh Laundromat Has Assets of $120,000 and Liabilities