Dave Ryan is the owner and operator of Ryan's Arcade. Ryan's $450,000 and liabilities of $125,000 at the year ended 31st Dec. using the accounting equation, determine the following amounts:
(a). Owner's equity as of December 31 of the current year
(b). Owner's equity as of December 31 at the end of the next year, assuming that assets increased by $65,000 and liabilities increased by $35,000 during the year.