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

Depreciation expense: $49,000;

Accrued sales revenue: $47,000;

Accrued expenses: $22,000;

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 total liabilities of $270,000 prior to adjusting entries, how much are Krug's total liabilities after the adjusting entries?

Multiple Choice

$319,000.

$238,000.

$285,000.

$270,000.