1. Precision Builders Construction Company started in 2018. The following activities

occurred during the year:

(1) Received from investors $60,000 cash and land valued at $35,000; each investor was

issued common stock in exchange.

(2) Purchased construction equipment for use in business at a cost of $36,000; one-fourth

was paid in cash and the company signed a note for the balance (due in six months).

(3) Lent $2,500 to one of the investors, who signed a note due in six months.

What are the total assets at the end of 2018? (Note: ignore any implications of interest on

the loan.)

A. $119,500

B. $131,000

C. $122,000

D. 128,500