$92,500 owner's equity increase.
What does equity mean in finance?
- The value that would be restored to a company's shareholders if all of its assets were sold and all of its obligations were settled is known as equity. Equity may also be thought of as the amount of ownership that remains in a company or asset after all obligations related to that asset have been paid off.
- Equity in the context of finance refers to ownership of assets with potential obligations such as debts. For accounting reasons, equity is calculated by deducting liabilities from the value of the assets.
- The difference of $14,000, For instance, is equity if a person owns a car worth $24,000 and owes $10,000 on the loan used to purchase the vehicle. A single asset, like a vehicle or house, or an entire company may be covered by equity. A company that wants to launch or grow its operations might sell stock to raise money that doesn't need to be returned on a predetermined timeline.
Given data :
Owners equity = Total asset increase + total liabilities decrease
= 76,000 + 16500
= 92500
So, owner's equity increase by $92,500
Learn more about equity refer to :
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