On December 31, 2016, Krug Company prepared adjusting entries that included the following items: Depreciation expense: $31,000. Accrued sales revenue: $29,000. Accrued expenses: $12,000. Used insurance: $9,000; the insurance was initially recorded as prepaid. Rent revenue earned: $7,000; the rent was initially prepaid by the tenant and credited to unearned rent revenue. If Krug Company reported stockholders' equity of $280,000 prior to the adjusting entries, how much is Krug's stockholders' equity after the adjusting entries?

$280,000.

$262,000.

$295,000.

$264,000.