During 2019, Canton Company's assets increased $95,500 and the liabilities decreased $17,300. Canton Company's stockhol

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During 2019, Canton Company's assets increased $95,500 and the liabilities decreased
$17,300. Canton Company's stockholders' equity at December 31, 2019 was $211,500. What
amount was stockholders' equity at January 1, 2019?

A) $98,700.
B) $324,300.
C) $133,300.
D) $289,700.
Answer: A
Explanation: Stockholders' equity = $98,700 at January 1, 2019.
The increase in stockholders' equity = the increase in assets ($95,500) minus the decrease in
liabilities (−$17,300) during 2019 = $95,500 + $17,300 = $112,800.
Ending stockholders' equity ($211,500) − the increase in stockholders' equity ($112,800) =
beginning stockholders' equity = $98,700.