At the end of the current year the owners equity in Durante

At the end of the current year, the owners\' equity in Durante Co. is $374,000. During the year, the assets of the business had increased by $82,000 and the liabilities had increased by $125,000. Owners\' equity at the beginning of the year must have been:

417,000

331,000

581,000

167,000

Solution

A. $417,000

Owners\' equity at the beginning of the year must have been:

= $374,000 - ($82,000 - $125,000)

= $417,000