7. The next question deals with the December 31,2019 Balance Sheet of Horan Industries. In 2019 , Horan produced net income of $10,000. Also during 2019,$5,000 in dividends were declared and paid What was Horan's retained earnings balance one year earlier on December 31,2018 ? $30,000$35,000$40,000$45,000 4. On January 1,2018, Schmidt Industries purchased a new paint sprayer for $400,000. The salvage value after 5 years is estimated to be $100,000. If the sprayer is depreciated by straight line depreciation for 5 years, what would the net book value for the sprayer be on December 31,2019 ? $120,000$180,000$240,000$280,000 65. Sarah is opening up a lemonade stand. On June 1st she spends $300 on lemonade mix, $100 on cookie dough, $50 on cups and $50 on ice. She also pays her mom $10 for renting a table. Based on the matching concept, which of the following is true regarding the recording of costs as it relates to those items? She should record the cost of all the items when they are paid for. 6. Which of the following is true regarding posting transactions into T-accounts in the ledger? Credits are posted on the left; debits are posted on the right. Debits are posted on the left; credits are posted on the right. For asset accounts, credits are posted on the left. For liability accounts, debits are posted on the right. 67. ABC Industries estimates its tax expense for 2019 to be $20,000. ABC makes a cash payment for $15,000 to the tax authorities on December 31,2019 . Their taxes payable account was $22,000 at the beginning of 2019 . What is the balance of that account at the end of 2019? $17,000$27,000$37,000$42,000