Packard Company engaged in the following transactions during Year 1, its first year of operations. (Assume all transactions are cash transactions.)

1. 1) Acquired $1,200 cash from the issue of common stock.
2. 2) Borrowed $670 from a bank.
3. 3) Earned $850 of revenues cash.
4. 4) Paid expenses of $300.
5. 5) Paid a $100 dividend.

During Year 2, Packard engaged in the following transactions. (Assume all transactions are cash transactions.)

1. 1) Issued an additional $575 of common stock.
2. 2) Repaid $395 of its debt to the bank.
3. 3) Earned revenues of $1,000 cash.
4. 4) Paid expenses of $460.
5. 5) Paid dividends of $150.

What is the amount of total assets that will be reported on Packard's balance sheet at the end of Year 2?

Multiple Choice

• $540

• $3,040

• $2,890

• $570