You have been provided the following information about High Inc. $\begin{array}{lll}\text { (in thousands of dollars) }&2005&2006\
\text { Current assets } & \$ 158 & \$ 163 \
\text { Long-term assets } & \$ 453 & \$ 502 \
\text { Current liabilities } & \$ 102 & \$ 143 \
\text { Long-term liabilities } & \$ 302 & \$ 348 \
\text { Net income } & \$ 32 & \$ 42
\end{array}$
-Owner's equity for 2006 is:
A)$20,000.
B)$154,000.
C)$174,000.
D)$207,000.

Question

Quizplus · Accepted Answer

Owner's equity can be calculated using the accounting equation: Assets = Liabilities + Owner's Equity. For 2006, the total assets are the sum of current assets ($163,000) and long-term assets ($502,000), which equals $665,000. The total liabilities are the sum of current liabilities ($143,000) and long-term liabilities ($348,000), which equals $491,000. Therefore, Owner's Equity = Total Assets - Total Liabilities = $665,000 - $491,000 = $174,000.

You Have Been Provided the Following Information About High Inc