An entity’s owners’ equity is one-third of its total liabilities. Its assets total $200,000. What is the amount of its owners’ equity?Question 2Select one:a.$50,000b.$66,667c.$150,000d.$300,000

To solve this problem, we need to use the accounting equation: Assets = Liabilities + Owners' Equity.

We know that Owners' Equity is one-third of total liabilities. So, we can express Owners' Equity as Liabilities/3.

Substituting this into the accounting equation, we get: Assets = Liabilities + (Liabilities/3).

We know that Assets total $200,000. So, we can set up the equation as:$200,000 = Liabilities + (Liabilities/3).

To solve for Liabilities, we first need to get rid of the fraction by multiplying the entire equation by 3: 3*$200,000 = 3*Liabilities + Liabilities.

This simplifies to: $600,000 = 4*Liabilities.

Dividing both sides by 4, we find that Liabilities = $150,000.

Since Owners' Equity is one-third of Liabilities, we divide $150,000 by 3 to find that Owners' Equity =$50,000.

So, the answer is a. $50,000.

To solve this problem, we need to use the accounting equation: Assets = Liabilities + Owners' Equity.

We know that Assets = $200,000 and Owners' Equity is one-third of total liabilities. Let's denote Liabilities as L and Owners' Equity as OE.

So, we can write the equation as follows: $200,000 = L + OE.

Given that OE is one-third of L, we can write OE as L/3.

Substitute OE in the equation: $200,000 = L + L/3.

To solve for L, we need to get rid of the fraction by multiplying the whole equation by 3: 3*$200,000 = 3L + L.

This simplifies to $600,000 = 4L.

Solving for L, we get L = $600,000 / 4 =$150,000.

Since Owners' Equity is one-third of Liabilities, OE = $150,000 / 3 =$50,000.

So, the amount of its owners' equity is $50,000. The answer is a.$50,000.