Riley Company borrowed $26,000 on April 1, Year 1 from the Titan Bank. The note issued by Riley carried a one year term and a 5% annual interest rate. Riley earned cash revenue of $920 in Year 1 and $700 in Year 2. Assume no other transactions. The amount of total liabilities that would appear on Riley's December 31 balance sheets for Year 1 and Year 2, respectively, would be: Multiple Choice $26,000 and so. $26,975 and $0. $26,975 and $27,350