Kamil's Car Repair Shop Ltd. started the year with total assets of $70,000 and total liabilities of $40,000. During the year, the business recorded $100,000 in car repair revenues, $65,000 in expenses, and dividends of $5,000. Shareholders' equity at the end of the year was

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Shareholders' equity at the beginning of the year was $30,000 ($70,000 assets - $40,000 liabilities). During the year, net income was $35,000 ($100,000 revenues - $65,000 expenses). After paying $5,000 in dividends, the ending equity is $60,000 ($30,000 + $35,000 - $5,000).