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1. Precision Builders Construction Company started in 2018. The following activities occurred during the year:
(1) Received from investors $60,000 cash and land valued at $35,000; each investor was issued common stock in exchange.
(2) Purchased construction equipment for use in business at a cost of $36,000; one-fourth was paid in cash and the company signed a note for the balance (due in six months).
(3) Lent $2,500 to one of the investors, who signed a note due in six months.
Question 1: What are the total assets at the end of 2018? (Note: ignore any implications of interest on the loan.)
A. $119,500
B. $131,000
C. $122,000
D. 128,500
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