The Smith Corporation began business this year and entered into the following transactions during the year. The company issued common stock in exchange for cash of $80,000 from stockholders, borrowed $40,000 from a bank, bought $12,000 of inventory on account, and purchased $32,000 of equipment by paying $12,000 in cash and issuing a note for the remainder. What is the amount of total liabilities to be reported on the balance sheet at the end of the year? O $40,000 $60,000 $72,000 $132,000