Lexington Company engaged in the following transactions during Year 1, its first year in operation: (Assume all transactions are cash transactions.) 1. Acquired $4800 cash from issuing common stock. 2. Borrowed $3100 from a bank. 3. Earned $4000 of revenues. 4. Incurred $2580 in expenses. 5. Paid dividends of $580. Lexington Company engaged in the following transactions during Year 2: (Assume all transactions are cash transactions.) 1. Acquired an additional $1400 cash from the issue of common stock. 2. Repaid $1930 of its debt to the bank. 3. Earned revenues, $5400. 4. Incurred expenses of $3110. 5. Paid dividends of $1720. What is the amount of total assets that will be reported on Lexington's balance sheet at the end of Year 1?
A. $1700
B. $8740
C. $8520
D. $3980
Answer: B
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