QUESTION 12 Clarification - Flash Enterprises Continuing Fact Pattern: You have numerous Flash Enterprises problems that will show up in a random order throughout the exam. Each Flash question is a small selection from a large comprehensive problem. Treat each Flash Enterprise question as stand alone, meaning you should ignore the scenarios that are not mentioned and include in your answer only the specific scenarios requested. Facts: Flash Enterprises provides you with the below unadjusted account balances as of 12/31/2019, all of which are normal: Ref. Ne Account Description Ref. No Account Description 1 Cash S26,045 17 Note Payable S65,000 2 Accounts Receivable 16,000 18 Contributed Capital 50,000 Employee Note Receivable 7.000 19 Retained Earnings 12.000 4 Supplies 2.400 20 Dividends 32.000 s Prepaid Advertising Expense 17,600 21 Service Fee Revenue 240,000 6 Prepaid Insurance Expense 9.745 22 Gain on asset disposal 5,115 7 Vehicle 55.00 23 Advertising Expense 34.000 8 Equipment 125,000 24 Depreciation Expense 0 9 Accumulated Depreciation 82,995 25 Insurance Expense 2.240 10 Accounts Payable-Gordon Industries 4,400 26 Interest Income 135 11 Dividend Payable 9,000 27 Interest Expense 0 12 Interest Payable 0 28 Miscellaneous Expense 965 13 New Customer Advance 9,000 29 Rent Expense 28,500 14 Rent Payable 0 30 Salaries Expense 92.000 15 Salaries Payable 31 Supplies Expense 24,000 16 Utilities Payable 0 32 Utilities Expense 4,950 Short Cut: using the above unadjusted account balances, Flash has net income for the twelve months ended at 12/31/2019 of $58,595. Please consider the following scenario: Flash uses the straight-line method of depreciation for the company's equipment and the units-of-production method for the vehicle. In the year of acquisition both assets (ie., the equipment and the vehicle) were acquired on January 1 and were assigned a 12% estimated salvage value and useful lives as follows: Equipment: 8 years during which Flash anticipates 24,000 hours of use and vehicle: 5 years during which Flash anticipates 80,000 miles will be driven. In 2019 the vehicle was driven 15,000 miles and the equipment was used for 2,650 hours. The Accumulated Depreciation account ("A/D") balance provided above can be broken down as follows: Vehicle $41,745 + Equipment $41,250 = $82,995 Required: What is the company's net income after recording the 2019 depreciation related to the vehicle? Round intermediate calculations to 4 digits and your final answer to the nearest $1. O A. $51,033 OB. None of the answer choices provided are correct. O C.$51,940 OD. $49,520 O E $48,283 OF. $48,915
