Assume that a business's balance sheet reports total assets of $500,000 and total liabilities of $300,000. Now assume that $20,000 of net fixed assets (net plant and equipment) are written off due to technological obsolescence. All else the same, what is the total equity of the business after the write-off?
Choose one answer.
a. $200,000
b. $190,000
c. $180,000
d. $170,000
e. There is insufficient information given to answer this question.