Baggins Company prepared a draft of its 2002 balance sheet. the draft statement reported total assets of $437,500. included in this total assets figure were the following items:

treasury stock Baggins Company at cost, which approximate market value on
December 31. $12,000
Unamortized patents $5,600
long-term advance to corporate executives $6,850
unrealized holding losses on available-for-sale securities 4,200

At which amount should Baggins' total assets be correctly reported in the december 31, 2002, balance sheet?

a. $420,850
b. $421,300
c. $425,050
d. $425,500