At the beginning of the year, Klitch Komatsu Co. had total assets of $1,650,000 and total liabilities of $990,000.

Instructions

Answer the following questions viewing each situation as being independent of the others:

a)If total assets decreased $416,000 during the year, and total liabilities increased $92,000, what is the amount of owner's equity at the end of the year?

b)During the year, total liabilities decreased $86,000 and owner's equity increased $51,000. What is the amount of total assets at the end of the year?

c)If total assets decreased $29,000 and owner's equity decreased $67,000 during the year, what is the amount of total liabilities at the end of the year?