HRM Consulting Pty Ltd started the year with total assets of $80 000 and total liabilities of $40 000. During the year the business earned $150 000 in income and incurred $95 000 in expenses. Dividends of $20 000 were paid during the year. Equity at the end of the period was:

a.$45,000

b.$40,000

c.$20,000

d.None of the answers is correct.

e.$75,000