Doug Miller Is the Owner and Operator of Miller's Arcade $31,2010$

Essay

Doug Miller is the owner and operator of Miller's Arcade. At the end of its accounting period, December 31, 2010, Miller's Arcade has assets of $450,000 and liabilities of $125,000. Using the accounting equation, determine the following amounts:
a. Owner's Equity as of December $31,2010$ .
b. Owner's Equity as of December 31, 2011, assuming that assets increased by $\$ 65,000$ and liabilities increased by $\$ 35,000$ during 2011