If the assets of a company increase by $55,000 during the year and its liabilities increase by $25,000 during the same year, then the change in equity of the company during the year must have been:
A. A decrease of $30,000.
B. An increase of $80,000.
C. An increase of $25,000.
D. A decrease of $80,000.
E. An increase of $30,000.
Answer: E
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