Let's carefully go through Malcolm's transactions step-by-step to determine his correct balance.
1. Starting balance: Malcolm had no beginning balance, which means his initial balance is \[tex]$0.00.
2. ATM deposit: Malcolm deposits \$[/tex]80.00 at the ATM.
[tex]\[
\text{Balance after ATM deposit} = \$0.00 + \$80.00 = \$80.00
\][/tex]
The balance is now \[tex]$80.00.
3. Grocery spending: Malcolm spends \$[/tex]25.50 on groceries.
[tex]\[
\text{Balance after grocery spending} = \$80.00 - \$25.50 = \$54.50
\][/tex]
The balance is now \[tex]$54.50.
4. Paycheck deposit: Finally, Malcolm deposits a paycheck of \$[/tex]650.00.
[tex]\[
\text{Balance after paycheck deposit} = \$54.50 + \$650.00 = \$704.50
\][/tex]
The balance is now \[tex]$704.50.
Therefore, considering all the transactions, Malcolm's correct balance should be:
\[
\boxed{\$[/tex]704.50}
\]
