Comparison of the balance sheet of Kohl Company at the end of 2009 with its bal¬ ance sheet at the end of 2008 showed that total assets had decreased by $34,500 and owners’ equity had increased by $7,500. The change in liabilities during the year was

a. a decrease of $42,000.

d. an increase of $42,000.

b. an increase of $27,000.

e. None of the above.

c. a decrease of $27,000.