Kablossom started a business in 2010 with total assets of \($35,000\) and total liabilities of \($32,000\). At the end of 2010, Kablossom’s total assets were \($65,000\), and total liabilities were $20,000.

After analyzing the data, answer the following questions:

1. What was the amount of the increase or decrease in stockholders’ equity?

2. Identify two possible reasons for the change in stockholders’ equity during the year.