1 More Info On January 1, 2018, Dazzling issued its common stock for $440,000. Early in January, Dazzling made the following cash payments: a. $180,000 for equipment b. $203,000 for inventory (seven cars at $29,000 each) C. $17,000 for 2018 rent on a store building In February, Dazzling purchased two cars for inventory on account. The cost of this inventory was $80,000 ($40,000 per car). Before year-end, the company paid off $24,000 of this debt. The company uses the first-in, first-out (FIFO) method to account for its inventory. During 2018, Dazzling sold eight autos for a total of $488,000. Before year-end, it had collected 80% of this amount. The business employs five people. The combined annual payroll is $125,000, of which Dazzling owes $12,000 at year-end. At the end of the year, the company paid income taxes of $12,600. Late in 2018, Dazzling declared and paid cash dividends of $16,000. For equipment, Dazzling uses the straight-line depreciation method, over five years with zero residual value. Print Done