Julia owes her dad $12. She wants a new blouse that just went on sale, so she borrows $20 from her sister. She pays her father $5 and spends the rest on the blouse. Which statement is true?

Julia initially owes her dad $12, so her status is −$12. Borrowing $20 means she also owes her sister $20, bringing her total debt to $32; paying her dad $5 reduces that debt to $27. She therefore owes $27 altogether, so her money status is −$27, choice C.

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