On January 1, 2018, Modern issued its common stock for $280,000. Early in January, Modern made the following cash payments: a. $120,000 for equipment b. $136,000 for inventory (four cars at $34,000 each) c. $23,000 for 2018 rent on a store building In February, Modern purchased nine cars for inventory on account. Cost of this inventory was $414,000 ($46,000 each). Before year-end, the company paid off $124,200 of this debt. The company uses the first-in, first-out (FIFO) method to account for its inventory. During 2018, Modern sold seven autos for a total of $490,000. Before year-end, it had collected 70% of this amount. The business employs four people. The combined annual payroll is $100,000, of which Modern owes $8,000 at year-end. At the end of the year, the company paid income taxes of $15,000. Late in 2018, Modern declared and paid cash dividends of $16,000. For equipment, Modern uses the straight-line depreciation method, over five years, with zero residual value.