A co. owner's equity is 1/3 of its total assets.Its liabilities $200,000.What is the total assets? A-$100,000 B-$150,000 C-$200,000 D-$300,000

The answer is D. $300,000

The basic accounting equation is Asset equals Liabilities plus Owner’s Equity

Let          A be assets

                L be liabilities

                E be owner’s equity

The formula is as follows:

A = L + E

A = $200,000 + (1/3)A

A – (1/3)A = $200,000

2/3(A) = $200,000

A = $300,000

option D. $300,000.........................

assets=liab.+o.equity

assets=200000+(1/3assets)

so2/3assets=200000

assets=200000*3/2=300000$

300000.

equity is1/3 of total asset therefore liabilty is2/3 of total asset.

total asset =200000*3/2 ie,300000

The total assets of the company amounting to $300,000

Liabilities :2/3 so the total assets:200000*3/2 : $300,000. Answer D : $300,000.

D) $300,000 approximately

Using the accounting equation mathematically

Asset = Liablities + Capital,  lets represent asset by "x" this implies x =200,000 +1/3x

x -1/3x =200,000

0.666667x =200,000

x (asset) =200,000/0.666667 =299,999.85 approximately $300,000

Answer

200000*3/2=300000

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