1. The following changes in Flip Corp.'s account balances occurred during 2014: Increase Assets $98,000 Liabilities 27,000 Capital Stock 60,000 Additional Paid In Capital 6,000 Except for a $13,000 dividend payment and the year's earnings, there were no other reductions in retained earnings for 2014. What was Flip's netincome for 2014?

4. January 1, 2014, Frick Co. issued 3,000 of its 9%, $1,000 face value bonds at 102 1/2. In connection with the sale of these bonds, Frick paid thefollowing expenses:

Promotion costs	$ 20,000
Engraving and printing	35,000
Legal fees & commissions	200,000

What amount should Frick record as:

a) bond issue costs to be amortized over the term of the bonds

b. bond premium or discount

2. During year 1, Flop Company engaged in the following transactions:

Salary expense to key employees who are also principal owners $100,000

Sales to affiliated enterprises 250,000

Which of the two transactions would be disclosed as related-party transactions in Flop's year 1 financial statements?

Question options:

a	Both transactions.
b	Neither transaction.
c	The $250,000 transaction only.
d	The $100,000 transaction only.