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If a business...

Question

If a business owns a piece of real estate worth Rs. $250, 000$ , and they owe Rs. $180, 000$ on a loan for that real estate, what is owners equity in the property?

A

50, 000

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B

60, 000

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C

70, 000

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D

80, 000

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Solution

The correct option is C $70, 000$
Price of real estate $= 250000$
Loan taken to buy it $= 180000$

$\Rightarrow$ Owners equity in property $= 250000 - 180000 = 70000$

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