Problem:
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.
Required:
Question: 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.