The total liabilities of Hogan's Company on the balance sheet are $270,000;this amount is equal to three-fourths of the total assets.What is the amount of owners' equity?
A)$202,500.
B)$ 90,000.
C)$360,000.
D)$630,000.

Question

Quizplus · Accepted Answer

The total assets are $360,000 (since $270,000 is three-fourths of the total assets). Owners' equity is calculated as Total Assets - Total Liabilities, which is $360,000 - $270,000 = $90,000.

The Total Liabilities of Hogan's Company on the Balance Sheet