A farm has current assets of $50,000, non-current assets of $4,500,000, and liabilities of $4,000,000. What is the value of this farm's owner's equity?

To determine the value of the farm's owner's equity, you can use the accounting equation, which states that assets equal liabilities plus owner's equity. This can be rearranged to find owner's equity:

Owner’s Equity = Total Assets - Total Liabilities.

In this case, the farm has current assets of $50,000 and non-current assets of $4,500,000. To find the total assets, you add these two numbers together:

Total Assets = Current Assets + Non-Current Assets

Total Assets = $50,000 + $4,500,000 = $4,550,000.

The farm also has total liabilities of $4,000,000.

Now, substitute these values into the rearranged accounting equation:

Owner’s Equity = Total Assets - Total Liabilities

Owner’s Equity = $4,550,000 - $4,000,000 = $550,000.

This calculation shows that the owner's equity of the farm is $550,000, which corresponds to the correct answer. Understanding how to apply the accounting equation is essential in agribusiness management, as it helps determine the net worth of a farm operation by assessing the relationship between what is owned and what is owed.