Answer:
a. Stockholders' equity as of December 31, 2017: $298,000
b. Stockholders' equity as of December 31, 2018: $197,000
Explanation:
Basing on accounting equation:
Total asset = Liabilities + Owner's (or Stockholders') Equity
Stockholders' Equity = Total asset - Liabilities
a. On December 31, 2017, Be-The-One has assets of $395,000 and liabilities of $97,000.
Stockholders' equity as of December 31, 2017 = $395,000 - $97,000 = $298,000
b. On December 31, 2018
Total asset = $395,000 - $65,000 = $330,000
Liabilities = $97,000 + $36,000 = $133,000
Stockholders' equity as of December 31, 2018 = $330,000 - $133,000 = $197,000
