Answer: the correct answer is $ 885,000
Explanation:
Mirr began operations on January 1, 2010
Assets= Liabilities + Patrimony or owner's equity
$860,000 = $110,000+ $750,000
In the first year liabilities grew to $120,000 and patrimony increased to $765,000 which is $750,000 beginning balance + $18,000 ($82,000 revenues - $64,000 expenses) - $ 3,000 declared dividends.
So for December 31, 2010 the assets should be
$885,000 = $120,000 + $ 765,000.
