What was the change in shareholders equity

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Reference no: EM131294927

1. Calculate the net income earned during the year. Assume that the change to shareholders’ equity results only from net income earned during the year.

Assets Liabilities

Balance Jan. 1, 2015 $112,500 $ 90,000

Balance Dec. 31, 2015 90,000 45,000

2. If total assets increased $25,000 and total liabilities decreased $7,000, what was the change in shareholders’ equity?

Reference no: EM131294927

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