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Lexington Company engaged in the following transactions during 2015, its first year in operation: (Assume all transactions are cash transactions)
1. Acquired $6,000 cash from issuing common stock.
2. Borrowed $4,400 from a bank.
3. Earned $6,200 of revenues.
4. Incurred $4,800 in expenses.
5. Paid dividends of $800.
Lexington Company engaged in the following transactions during 2016:
1. Acquired an additional $1,000 cash from the issue of common stock.
2. Repaid $2,600 of its debt to the bank.
3. Earned revenues, $9,000.
4. Incurred expenses of $5,500.
5. Paid dividends of $1,280.
The amount of total assets on Lexington's 2015 balance sheet was
a) $12,000.
b) $1,600.
c) $7,600.
d) $11,000.
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