The Year-End Financial Statements of Calloway Company Contained the Following

Multiple Choice

The year-end financial statements of Calloway Company contained the following elements and corresponding amounts: Assets = $50,000; Liabilities = ?; Common Stock = $15,000; Revenue = $22,000; Dividends = $1,500; Beginning Retained Earnings = $3,500; Ending Retained Earnings = $7,500. The amount of liabilities reported on the end-of-period balance sheet was:

A) $27,500.
B) $31,500.
C) $35,000.
D) $42,500.