Metropolitan Casting Services Started the Year with Total Assets of $130,000

Multiple Choice

Metropolitan Casting Services started the year with total assets of $130,000 and total liabilities of $60,000.The company is a sole proprietorship.The revenues and the expenses for the year amounted to $130,000 and $50,000,respectively.During the year,there were no new capital contributions and the owner withdrew $60,000.Calculate the amount of increase or decrease in owner's equity for the year.

A) a $20,000 increase
B) a(n) $90,000 increase
C) a(n) $70,000 decrease
D) a $60,000 increase