The year-end financial statements of Calloway Company contained the following elements and corresponding amounts: Assets = $50,000; Liabilities = ?; Common Stock = $15,000; Revenue = $22,000; Dividends = $1,500; Beginning Retained Earnings = $3,500; Ending Retained Earnings = $7,500.

The amount of liabilities reported on the end-of-period balance sheet was

a. $27,500.

b. $31,500.

c. $35,000.

d. $42,500.