Question

. If Total assets = $34,500 and Total liabilities = $28,000, Owner's equity =

A. $5,600
OB. $65,200
O C. $6,500
O D. $62,500

Answer 1

C. $6,500

Explanation:

Owner's equity is the amount of the business's assets that are owned by the owner or shareholders. It is calculated by subtracting the total liabilities from the total assets.

Given that Total assets = $34,500 and Total liabilities = $28,000, the owner's equity is:

Owner's equity = Total assets - Total liabilities

= $34,500 - $28,000

= $6,500

Therefore, the correct answer is C. $6,500.