Baggins Company Prepared a Draft of Its 2011 Balance Sheet

Multiple Choice

Baggins Company prepared a draft of its 2011 balance sheet. The draft statement reported total assets of $437,500. Included in this total assets figure were the following items:

At which amount should Baggins' total assets be correctly reported in the December 31, 2011, balance sheet?

A) $420,850
B) $421,300
C) $425,050
D) $425,500