Torch of Freedom is a security consulting business. On December 31, 2019, they had assets of $495,000 and liabilities of $97,000. Using the accounting equation, determine the following amounts:

1. Stockholders' equity as of December 31, 2019.
2. Stockholders' equity as of December 31, 2020, assuming that assets decreased by $65,000 and liabilities increased by $36,000 during 2020.