An owner investment of a building, valued at $200,000, along with a $55,000 outstanding mortgage, into an entity would:
A)increase owner's equity $145,000.
B)increase total assets $55,000.
C)decrease liabilities $145,000.
D)increase owner's equity $200,000.

Question

Quizplus · Accepted Answer

The owner's equity increases by the net value of the building after accounting for the mortgage, which is $200,000 - $55,000 = $145,000.

An Owner Investment of a Building, Valued at $200,000, Along