During 2022, Baltic Company incurred operating expenses amounting to $220,000, of which $144,000 was paid in cash; the balance will be paid during 2023. Which of the following is correct for the 2022 year-end balance 1. Assets decrease $220,000, liabilities increase $76,000, and stockholders' equity decreases $220,000 2. Assets decrease $220,000 and stockholders' equity decreases $220,000. 3. Stockholders' equity decreases $144,000 and assets decrease $144,000. 4. Stockholders' equity decreases $220,000, assets decrease $144,000, and liabilities increase $76,000