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. $40 000

b. $45 000

c. $75 000

d. $20 000