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Question: Shannon Cook is the owner and operator of Galaxy LLC, a motivational consulting business. At the end of its accounting period, December 31, 2011, Galaxy has assets of $800,000 and liabilities of $450,000.Using the accounting equation, determine the following amounts:
a. Owners equity, as December 31, 2011.
b. Owners equity, as of December 31, 2012, assuming that assets increased by $175,000 and liabilities decreased by $60,000 during 2012.
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