Packard Company engaged in the following transactions during Year 1, its first year of operations: (Assume all transactions are cash transactions.) 1) Acquired $1650 cash from the issue of common stock. 2) Borrowed $1120 from a bank. 3) Earned $1350 of revenues. 4) Paid expenses of $390. 5) Paid a $190 dividend. During Year 2, Packard engaged in the following transactions: (Assume all transactions are cash transactions.) 1) Issued an additional $1025 of common stock. 2) Repaid $710 of its debt to the bank. 3) Earned revenues of $1450. 4) Incurred expenses of $640. 5) Paid dividends of $240. The amount of total liabilities on Packard's Year 1 balance sheet is
A. $1510
B. $410
C. $1120
D. $760
Answer: C
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