On January 1, 2020, total assets for Liftoff Technologies were $125,000; on December 31, 2020, total assets were $145,000. On January 1, 2020, total liabilities were $110,000; on December 31, 2020, total liabilities were $115,000. What are the amount of the change and the direction of the change in Liftoff Technologies shareholders' equity for 2020?

Question

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Shareholders' equity is calculated as total assets minus total liabilities. On January 1, 2020, equity was $15,000 ($125,000 - $110,000). On December 31, 2020, equity was $30,000 ($145,000 - $115,000). The change is an increase of $15,000.

On January 1, 2020, Total Assets for Liftoff Technologies Were