Answer:
$135,000
Explanation:
Equity is the difference between the assets and liabilities of an entity.
Using the accounting equation;
Assets - Liabilities = Equity
Given;
Opening assets balance = $350,000
Opening liabilities balance = $230,000
Therefore;
Opening balance of equity = $350,000 - $230,000
= $120,000
Increase in asset = $20,000
Increase in liabilities = $5,000
Increase in equity = $20,000 - $5,000
= $15,000
Balance of stockholders' equity at December 31, 2016 = $120,000 + $15,000
= $135,000
