The assets and liabilities of a company are $128,000 and $84,000, respectively. Owner's equity should equal
A) $212,000
B) $44,000
C) $128,000
D) $84,000

Name: The assets and liabilities of a company are $128,000 and $84,000, respectively. Owner's equity should equal A) $212,000 B) $44,000 C) $128,000 D) $84,000
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Question

Quizplus · Accepted Answer

Owner's equity is calculated by subtracting liabilities from assets. 
Therefore, owner's equity = assets - liabilities 
= $128,000 - $84,000 
= $44,000. 
Hence, the correct option is B.

The Assets and Liabilities of a Company Are $128,000 and $84,000