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On December 31, 2006, the net assets of Marino Manufacturing amounted to $40,000. Net income calculated by using the financial capital maintenance concept amounted to $12,000. During the year, additional common stock was issued for $8,000, and $5,000 of dividends were paid. The net assets at January 1, 2006, amounted to

a. $31,000

b. $37,000

c. $20,000

d. $25,000