Elena purchased a new laptop for $1,500, paying $300 upfront and financing the rest with a loan. They are also paying $50 per month for software subscriptions and $100 per month for internet. What is the liability in this scenario?

A liability is an amount Elena owes. The laptop cost $1,500, and after paying $300 upfront, Elena financed the remaining $1,200 with a loan. That loan is the liability; the upfront payment is already paid, and the monthly software and internet costs are expenses.

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