A company has assets of $150,000 and owner's equity of $60,000. What is the amount of liabilities?

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To determine the amount of liabilities, you can use the accounting equation, which states that Assets = Liabilities + Owner's Equity.

In this scenario, the company has assets totaling $150,000 and owner's equity amounting to $60,000. To find liabilities, you rearrange the accounting equation to solve for liabilities:

Liabilities = Assets - Owner's Equity.

Substituting the known values from the question gives you:

Liabilities = $150,000 - $60,000.

By performing the calculation, you find that the remaining balance, which represents liabilities, is $90,000.

This result confirms that the correct option is the one indicating $90,000, as it accurately reflects the relationship defined by the accounting equation and provides insight into the financial position of the company.

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