If total assets are $374,600 and owner's equity is $64,700, what are the total liabilities?

To determine the total liabilities, you can use the accounting equation, which states that total assets equal total liabilities plus owner's equity. The formula can be expressed as:

Total Assets = Total Liabilities + Owner's Equity.

Given that total assets are $374,600 and owner's equity is $64,700, you can rearrange the formula to find total liabilities:

Total Liabilities = Total Assets - Owner's Equity.

Plugging in the values:

Total Liabilities = $374,600 - $64,700

Total Liabilities = $309,900.

This calculation shows that total liabilities amount to $309,900, which corresponds to the provided answer choice B. Understanding this concept is crucial in financial management and accounting, as it illustrates the relationship between a company’s resources (assets), the claims of its owners (equity), and the amounts owed to creditors (liabilities).