Q#17: Quinn Spellman formed Spellman Tutoring, Inc (STI) and it has since become a popular provider of academic tutoring within the local community. You are working with the company to prepare the 20X1 financial statements and Quinn provides you with the below 12/31/20X1 account balances, all of which are normal. As indicted by the question mark, certain balances have been intentionally omitted. A/C# Account Description Balance A/C# Account Description Balance 100 Cash $? 300 Common stock $30,000 105 Accounts receivable 12,000 305 Retained earnings 20,000 110 Prepaid advertising expense 33,000 310 Dividends 20,000 115 Teaching supplies 28,000 400 Tutoring Revenue 215,000 120 Copy Machine 16,000 500 Advertising Expense 40,000 125 Accumulated depreciation 12,960 505 Depreciation expense 0 130 Land 25,000 510 Equipment Rental Expense 9,000 200 Accounts Payable- SSC 7,000 515 Insurance Expense 7,000 205 Interest Payable 0 520 Interest expense 0 210 Tutoring Advance Pay 0 525 Miscellaneous Expense ? 215 Wages Payable 0 530 Supplies Expense 0 220 Utilities Payable 0 535 Utilities expense 11,000 225 Notes payable 50,000 540 Wages expense 105,000 Consider that the company owns only a single asset, the copy machine, and STI rents all other equipment. The copy machine is depreciated using the units of production depreciation method. At the time of purchase, STI estimated a residual value equal to 10% of the asset's purchase price and estimated (per the manufacturer's guidelines) that 160,000 copies would be made during the asset's life. Assume that 18,000 copies were made in 20X1. Select the answer below that shows the 12/31/20X1 AJE for depreciation: