Use the accounting equation to answer each question that follows.
1. At the beginning of the year, Palette Company's assets were $90,000, and its stockholders' equity was $50,000. During the year, assets increased by $30,000 and liabilities increased by $5,000. What was the stockholders' equity at the end of the year?
2. At the beginning of the year, Carmines Company had liabilities of $100,000 and stockholders' equity of $96,000. If assets increased by $40,000 and liabilities decreased by $30,000, what was the stockholders' equity at the end of the year?
Text Book: Financial and Managerial Accounting By Belverd Needles, Marian Powers, Susan V. Crosson.