Lynn Shackelford is the owner and operator of Galaxy LLC, a motivational consulting business. At the end of its accounting period, December 31, 2013, Galaxy has assets of $563,000 and liabilities of $135,000. Using the accounting equation, determine the following amounts:

a. Owner's equity as of December 31, 2013.

b. Owner's equity as of December 31, 2014, assuming that assets decreased by $107,000 and liabilities increased by $32,000 during 2014.