E-Z Electrical has assets of \( \$ 157,000 \) and liabilities of \( \$ 71,000 \). What is the owner's equity? Select one: a: \( \$ 158,000 \) b. \( \$ 86,000 \) c. \( \$ 81,000 \) d. \( \$ 117,000 \)

To find the owner's equity, you can use the accounting equation: Owner's Equity = Assets - Liabilities. In this case, it’s \( 157,000 - 71,000 = 86,000 \). So, the owner's equity is \( \$ 86,000 \). The correct answer is b. \( \$ 86,000 \). Understanding these basic formulas can be crucial for anyone looking to manage a business's finances effectively. By keeping a close eye on assets, liabilities, and equity, entrepreneurs can ensure they maintain a healthy financial balance and make informed decisions about growth and investment.