Packard Company engaged in the following transactions during Year 1, its first year of operations: (Assume all transactions are cash transactions.)  1) Acquired $1100 cash from the issue of common stock.  2) Borrowed $570 from a bank.  3) Earned $750 of revenues.  4) Paid expenses of $280.  5) Paid a $80 dividend.  During Year 2, Packard engaged in the following transactions: (Assume all transactions are cash transactions.) 1) Issued an additional $475 of common stock.  2) Repaid $325 of its debt to the bank.  3) Earned revenues of $900.  4) Incurred expenses of $420.  5) Paid dividends of $130. What is the amount of total stockholders' equity that will be reported on Packard's balance sheet at the end of Year 1?

A. $390.
B. $1020.
C. $1570.
D. $1490.


Answer: D

Business

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