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

Depreciation expense: $35,000;

Accrued sales revenue: $33,000;

Accrued expenses: $16,000;

Used insurance: $7,000; the insurance was initially recorded as prepaid.

Rent revenue earned: $5,000; the rent was initially prepaid by the tenant and credited to unearned rent revenue.

If Krug Company reported stockholders' equity of $230,000 prior to the adjusting entries, how much is Krug's stockholders' equity after the adjusting entries?

Multiple Choice

• $216,000.

• $230,000.

• $245,000.

• $210,000.