Mountain Ski Resort had the following transactions for the month of January 2020:

1. Owner invested $5,000. 2. Purchased a snow-grooming machine for $28,000 (50% on account). 3. Paid $62,700 in salaries and wages. 4. Sold $19,250 in their restaurant. 5. Sold $34,100 in their gift shop. 6. Sold $47,800 in hotel room rentals.

If the companys assets increased by $12,000 in January, what is the net change in the companys liabilities for January?

a. Increase by $27,450

b. increase by $5,450

c.decrease by $17,450

d.decrease by $31,450