## Explanation Let's **calculate the total assets** for The Sally Company as of December 31, 2025, based on the provided data. ### **Assets (Debit Balances)** - **Cash:** $1,100 - **Accounts Receivable:** $800 - **Inventory:** $1,900 - **Supplies:** $1,800 - **Prepaid Rent:** $600 - **Land:** $5,800 - **Building:** $40,200 #### **Total Assets (before Accumulated Depreciation):** \[ 1,100 + 800 + 1,900 + 1,800 + 600 + 5,800 + 40,200 = 52,200 \] ### **Less: Accumulated Depreciation—Building (Contra-Asset)** - **Accumulated Depreciation—Building:** $8,600 \[ 52,200 - 8,600 = 43,600 \] ### **Liabilities (Credit Balances)** - **Accounts Payable:** $7,900 - **Unearned Revenue:** $4,100 #### **Total Liabilities** \[ 7,900 + 4,100 = 12,000 \] --- ## **Final Calculation: Total Equity (Assets - Liabilities)** \[ \text{Total Assets} - \text{Total Liabilities} = 43,600 - 12,000 = 31,600 \] --- ## **Answer Choices Review** However, the answer choices are: - A. $16,500 - B. $12,000 - C. $13,900 - D. $7,900 But our calculated net assets (equity) is **$31,600**. Let's check if the question is asking for something different, like current assets or total liabilities. ### **Current Assets Calculation** - Cash: $1,100 - Accounts Receivable: $800 - Inventory: $1,900 - Supplies: $1,800 - Prepaid Rent: $600 \[ 1,100 + 800 + 1,900 + 1,800 + 600 = 6,200 \] ### **If asking for Net Book Value of Building** - Building: $40,200 - Less: Accumulated Depreciation: $8,600 \[ 40,200 - 8,600 = 31,600 \] None of these match the options. ### **If asking for Total Liabilities** \[ 7,900 + 4,100 = 12,000 \] **Option B. $12,000** matches this value. --- ## **Final Summary** - **If the question is about Total Liabilities**, the answer is **$12,000** (Option B). - **If the question is about Total Assets minus Liabilities (Equity)**, the answer is **$31,600** (not listed). - **If the question is about Net Book Value of Building**, the answer is **$31,600** (not listed). - **None of the other calculations match the answer choices.** **Based on the provided options, the most likely answer is:** --- ### **B. $12,000 (Total Liabilities)** --- If you clarify what specifically is being asked (total assets, liabilities, current assets, etc.), I can confirm or adjust the calculation.

## Explanation The question appears to be incomplete as it does not clearly define what is being asked. Based on the provided financial data for The Say Company as of December 31, 2025, we can derive various financial metrics. ### Total Assets Calculation The total assets can be summarized as follows: #### **Assets (Debit Balances)** - **Cash:** $1,100 - **Accounts Receivable:** $800 - **Inventory:** $1,900 - **Supplies:** $1,800 - **Prepaid Rent:** $600 - **Land:** $5,800 - **Building:** $40,200 #### **Total Assets (Before Depreciation)** \[ 1,100 + 800 + 1,900 + 1,800 + 600 + 5,800 + 40,200 = 52,200 \] ### Less: Accumulated Depreciation - **Accumulated Depreciation—Building:** $8,600 #### **Total Assets (After Depreciation)** \[ 52,200 - 8,600 = 43,600 \] ### Total Liabilities Calculation #### **Liabilities (Credit Balances)** - **Accounts Payable:** $7,900 - **Unearned Revenue:** $4,100 #### **Total Liabilities** \[ 7,900 + 4,100 = 12,000 \] --- ## Final Calculation: Total Equity To find the total equity: \[ \text{Total Assets} - \text{Total Liabilities} = 43,600 - 12,000 = 31,600 \] --- ## Answer Choices Review The provided answer choices are: - A. $16,500 - B. $12,000 - C. $13,900 - D. $7,900 ### Analysis of Options - **Total Liabilities:** Calculated as $12,000 (matches Option B). - **Total Assets:** Calculated as $43,600 (not listed). - **Total Equity:** Calculated as $31,600 (not listed). ### Current Assets Calculation Calculating current assets gives: \[ 1,100 + 800 + 1,900 + 1,800 + 600 = 6,200 \] None of the calculations align with the provided options. --- ## Final Summary - The question lacks specificity regarding what calculation is needed. - **If asking for Total Liabilities:** The answer is **$12,000 (Option B)**. - **If asking for Total Assets minus Liabilities (Equity):** The answer is **$31,600** (not listed). - **If asking for Total Current Assets:** The answer is **$6,200** (not listed). **Conclusion:** Based on the provided options and calculations, the most logical answer is **B. $12,000 (Total Liabilities)**, but further clarification on the question would be beneficial.