The year-end financial statements of Calloway Company contained the following elements and corresponding amounts: Assets = $25,000; Liabilities = ?; Common Stock = $5,500; Revenue = $12,000; Dividends = $1,000; Beginning Retained Earnings = $4,000; Ending Retained Earnings = $7,500.

Based on this information, the amount of expenses on Calloway's income statement was

Multiple Choice

$9,500.

$7,500.

$500.

$3,500.