31. Snark Inc. ended the year with $100,000 in salaries payable. During the year they paid $75,000 in cash salaries and recorded $85,000 in salary expenses. What was their beginning year's balance for salaries payable? $110,000 $100,000 $90,000 $85,000 2. Under GAAP, which of the following would not qualify a lease arrangement as a capital lease? The lessee has an option to purchase the leased asset at fair market value. Ownership of the leased asset is transferred to the lessee at the end of the lease term. The term of the lease is 75 percent or more of the leased asset's economic life (i.e., its productive life). The present value of the lease payments discounted by the lessee's borrowing cost is 90 percent or more of the fair value of the property. 3. Lincoln Fences receives a shipment of goods from its supplier. It pays $40,000 at the time of delivery and promises to pay the remaining $200,000 within the next 40 days. What is the appropriate journal entry for this transaction? Debit cost of goods sold $240,000; credit cash $40,000; credit accounts payable $200,000 Debit inventory $240,000; credit cash $40,000; credit accounts payable $200,000 Debit accounts payable $200,000; debit cash $40,000; credit inventory $240,000 Debit inventory $40,000; credit cash $40,000 34. In the statement of cash flows, which of the following is not considered an operating activity? Inventory purchased Wages paid to employees Taxes paid Issuance of long-term debt