Question: During 2 0 2 1 , Peaceful River Spa reported revenue of $ 4 0 , 0 0 0 and total expenses for the year

During 2021, Peaceful River Spa reported revenue of $40,000 and total expenses for the year were $35,000. Peaceful River Spa ended the year with total assets of $ 23,000, and it owed debts totalling $9,000. At year-end 2020, the business reported total assets of $18,000 and total liabilities of $9,000.
Required:
a. calculate profit for the year.
b. Did equity increase or decrease during 2021? By how much?

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