Fact Pattern: Pimlico Corp. uses the direct method to prepare its statement of cash flows. Pimlico's trial balances at December 31, Year 2 and Year 1, are as follows: December 31 Year 2 Year 1 $ 1,300 $ 1,100 15,000 16,500 25,000 17,500 21,000 27,100 5,300 Debits Cash Accounts receivable Inventory Property, plant, & equipment Unamortized bond discount Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense December 31 Year 2 $ 35,000 33,000 A. $142,000 B. $141,500 o C. $140,000 OD. $141 000 31,000 100,000 4,500 250,000 141,500 137,000 4,300 20,400 $756,700 Year 1 $ 32,000 30,000 47,000 95,000 5,000 380,000 172,000 151,300 2,600 61,200 $976,100 Pimlico purchased $5,000 in equipment during Year 2. Credits Allowance for credit losses Accumulated depreciation Trade accounts payable Income taxes payable Deferred income taxes 8% callable bonds payable Common stock Additional paid-in capital Retained earnings Sales 4,600 20,000 40,000 9,100 7,500 44,700 64,600 538,800 778,700 $756,700 $976,100 Pimlico allocated one-third of its depreciation expense to selling expenses and the remainder to general and administrative expenses, which include the provision for credit losses. What amounts should Pimlico report in its statement of cash flows for the year ended December 31, Year 2, for cash paid for selling expenses? 45,000 50,000