Timberlake Company Has Total Assets, Liabilities, and Shareholders' Equity of $28,000

Multiple Choice

Timberlake Company has total assets, liabilities, and shareholders' equity of $28,000, $15,000, and $21,000, respectively, at the beginning of 2010.At the end of 2010, total assets, liabilities, and shareholders' equity were reported at $24,000, $13,000, and $19,000, respectively.
-How much additional debt can Timberlake Company incur and still have its debt/equity ratio remain less than or equal to 1.00?

A) $6,000
B) $25,000
C) $12,000
D) $24,000