A company was formed with $61,000 cash contributed by its owners in exchange for common stock. The company borrowed $31,000 from a bank. The company purchased $11,000 of inventory and paid cash for it. The company also purchased $71,000 of equipment by paying $10,000 in cash and issuing a note for the remainder.What is the amount of the total liabilities to be reported on the balance sheet?

A. $81,000
B. $92,000
C. $0
D. $61,000


Answer: B

Business

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Business