2. Calculate the net income earned during the year. Assume that the change to shareholders equity results only from net income earned during the year.

Assets Liabilities

Balance Jan. 1, 2015 $112,500 $ 90,000

Balance Dec. 31, 2015 90,000 45,000

3. If total assets increased $25,000 and total liabilities decreased $7,000, what was the change in shareholders equity?