To calculate the Owner's Equity (\(E\)):
\[ E = A - L \]
Where:
Equity is a measure of any person's assets minus their liabilities. Owner's equity is simply this value with respect to the owner of a company.
Let's assume the following values:
Using the formula:
\[ E = 500,000 - 200,000 = 300,000 \text{ dollars} \]
The Owner's Equity is $300,000.
Let's assume the following values:
Using the formula:
\[ E = 1,000,000 - 400,000 = 600,000 \text{ dollars} \]
The Owner's Equity is $600,000.
