Bartman Company showed $42,000 in prepaid rent on December 31, 2009. On December 31, 2010, the balance in the prepaid rent account was $50,400. Rent expense for 2010 was $105,000.

Required:
1. What amount of cash was paid for rent in 2010?
2. What adjustment in prepaid expenses is needed if the indirect method is used to prepare Bartman Company’s statement of cash flows?