On December 31, 2019, Krug Company prepared adjusting entries that included the following items:

Depreciation expense: $42,000;

Accrued sales revenue: $40,000;

Accrued expenses: $30,000;

Used insurance: $8,000; the insurance was initially recorded as prepaid.

Rent revenue earned: $6,000; the rent was initially prepaid by the tenant and credited to unearned rent revenue.

If Krug Company reported total liabilities of $200,000 prior to adjusting entries, how much are Krug's total liabilities after the adjusting entries?

Multiple Choice

• $224,000.

• $184,000.

• $200,000.

• $242,000.