Tony’s Advertising started a business in 2018 with total assets of $50,000 and total liabilities of $18,000. At the end of 2018, Tony’s Advertising’s total assets were $39,000 and total liabilities were $10,000.

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.