Answer:
a. $400,000
b. $495,000
Explanation:
Assets = Equity + Liabilities
520,000 = Equity + 250,000
Equity = 520,000 - 250,000
= $270,000
a. Assets increased by $60,000. This would be:
= 520,000 + 60,000
= $580,000
Equity decreased by $90,000:
= 270,000 - 90,000
= $180,000
Liabilities = Assets - Equity
= 580,000 - 180,000
= $400,000
b. Total liabilities decreased $75,000:
= 250,000 - 75,000
= $175,000
Equity increased by $50,000:
= 270,000 + 50,000
= $320,000
Assets = Equity + Liabilities
= 175,000 + 320,000
= $495,000