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 issuing common stock.
• Borrowed $2,550 from a bank.
• Earned $3,450 of revenues.
• Incurred $2,470 in expenses.
• Paid 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.
• Repaid $1,545 of its debt to the bank.
• Earned revenues, $4,850.
• Incurred expenses of $2,890.
• Paid 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

$6,980

$6,760

$1,150

$3,870