1) Consider that Flint purchases 100% of the Photography Supplies on account from vendor, Professional Photography Supplies ("PPS"). Calculate the amount of cash Flint paid for Photography Supplies during 2018.

A) $5,000 B) $8,500 C) $6,000 D) $2,500 E) NOTA

2) Consistent with the account balances reported in Exhibit 1 on pg. 5. Flint provides the following details of the fixed asset accounts at the beginning and end of 2018:

In addition to buying a new vehicle (vehicle #2 above), on January 1, 2018 Flint sold a table (Furniture). Other than these two items there were no other fixed asset acquisitions or dispositions. How much depreciation should Flint record in 2018?

A) $24,675 B) $24,000 C) $22,125 D) $22,425 E) $24,375

3) Continue with question #2. What was the selling price of the table Flint sold in 2018?

A) $2,000 B) $1,400 C) $900 D) $800 E) $1,100

Exhibit 1: 12/31/2018 $33,625 17,000 2,750 7,650 11,000 18,000 30,000 115,000 64,575 5,500 0 30,000 3,250 0 A/C# 100 105 110 115 120 150 155 160 180 200 205 210 215 220 225 250 300 325 326 400 405 500 505 510 515 520 525 530 535 540 545 599 1/1/2018 $31,325 24,000 2,750 4,000 7,500 20,000 30,000 45,000 65,475 3,000 0 16,000 3,000 1,700 400 0 50,000 25,000 0 Account Title Cash Accounts Receivable Prepaid Advertising Expense Prepaid Insurance Expense Photography Supplies Furniture Office Equipment Vehicle Accumulated Depreciation Accounts Payable-PPS Interest Payable Prepaid Photography Services Rent Payable Salaries Payable Utilities Payable Note Payable Common Stock Retained Earnings, Jan. 1 Dividends Photography Revenue Interest Income Advertising Expense Depreciation Expense Insurance Expense Interest Expense Miscellaneous Expense Photography Supplies Expense Rent Expense Repair & Maintenance Expense Salaries Expense Utility Expense Loss on asset disposal 40,000 50,000 25,000 15,000 196,000 200 14,600 0 4,000 0 3,750 5,000 34,750 3,000 95,000 4,100 300 Beginning of the year (12/31/2017): Cost AD Furniture $20,000 ($9,000) Office Equipment 30,000 (17,100) Vehicle #1 45,000 (39,375) $95,000 ($65,475) Method Straight Line Straight Line Units of Production Life Residual 6 years 10% of cost 5 years 5% of cost 72,000 miles 10% of cost End of the year (12/31/2018): Cost Furniture $18,000 Office Equipment 30,000 Vehicle #1 45,000 Vehicle #2 70,000 $163,000 AD ($8,100) (17,100) (39,375) 0 ($64,575) Method Straight Line Straight Line Units of Production Units of Production Actual Miles Life Residual driven-2018 6 years 10% of cost n.a. 5 years 5% of cost n.a. 72,000 miles 10% of cost 6,000 90,000 miles 10% of cost 18,000 24,000