Use the accounting equation to answer each question below.

1. At the beginning of the year, Fazio Company’s assets ire $45,000, and its owner’s equity was $25,000. During the year, acts increased by $30,000 and liabilities increased by $5,000. What was the owner’s equity at the end of the year?

2. At the beginning of the year, Gal Company had liabilities of $50,000 and owner’s equity of $96,000. If assets increased by $40,000 and liabilities decreased b $30,000, what was the owner’s equity at the end of the year?