Kristen Hagan is the owner and operator of You’re Cool, a motivational consulting business. At the end of its accounting period, December 31, 2007, You’re Cool has assets of $336,000 and liabilities of $172,500. Using the accounting equation, determine the following amounts:
a. Owner’s equity, as of December 31, 2007.
b. Owner’s equity, as of December 31, 2008, assuming that assets increased by $75,000 and liabilities increased by $15,000 during 2008.
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