Snart Co. had the following balances at December 31, Year 4:

Cash in checking account	$ 35,000
Cash in money market account	75,000
U.S. Treasury bill, purchased 11/1/Yr 4, maturing 1/31/Yr 5	350,000
U.S. Treasury bill, purchased 12/1/Yr 4, maturing 3/31/Yr 5	400,000

Snarts policy is to treat as cash equivalents all highly liquid investments with a maturity of 3 months or less when purchased. What amount should Snart report as cash and cash equivalents in its December 31, Year 4, balance sheet?

A.

$460,000

B.

$860,000

C.

$110,000

D.

$385,000