Lexington Company engaged in the following transactions during Year $1,$ Its first year In operation: $($Assume all transactions are cash transactions$)$

Acquired $$3,700$ cash from Issuling common stock.

Borrowed $$2550$ from a bank.

Earned $$3,450$ of revenues.

Incurred $$2,470$ in expenses.

Pald dividends of $$470.$

Lexington Company engaged in the following transactions during Year $2$: $($Assume all transactions are cash transactions$)$

Acquired an additional $$850$ cash from the issue of common stock.

Repald $$1,545$ of its debt to the bank.

Earned revenues, $$4,850.$

Incurred expenses of $$2,890.$

Pald dividends of $$1,060.$

What is the amount of total assets that will be reported on Lexington's balance sheet at the end of Year $1?$

Multiple Choice

$$3,870$

$$1,150$

$$6,760$

$$6,990$