Final answer:
The correct equation representing James's potential money after seeing Rita is |x - 42.80| = 12, accounting for either paying or receiving $12.
Step-by-step explanation:
The equation that represents the amount of money James may have after he sees Rita, considering he currently has $42.80 and he may either pay her $12 or receive $12 from her is |x - 42.80| = 12. This equation takes into account both scenarios: if James has to pay Rita, he will subtract $12 from his current amount, and if Rita has to pay him, he will add $12 to his current amount. The absolute value is used because we're considering two possible changes to the amount he has: a decrease or an increase by $12.