Butler Company is owned by Rachel Butler. The company had total assets of $850,000 and total liabilities of $550,000 at the beginning of the year. Answer each of the following independent questions:

a. During the year, total assets increased by $130,000 and total liabilities decreased by $80,000. What is the amount of owner’s equity at the end of the year?

b. Total liabilities decreased by $95,000 during the year. The company incurred a loss of $40,000. R. Butler made an additional investment of $100,000 and made no withdrawals. What is the amount of total assets at the end of the year?

c. Total assets increased by $45,000 and total liabilities decreased by $50,000. There were no additional owner’s investments, and R. Butler withdrew $40,000. What is the amount of profi t or loss for the year?