2.20 Analyzing Transactions. Using the analytical framework, indicate the effect of the following related transactions of a firm. a. January 1: Issued 10,000 shares of common stock for $50,000. b. January 1: Acquired a building costing $35,000, paying $5,000 in cash and borrowing the remainder from a bank. c. During the year: Acquired inventory costing $40,000 on account from various suppliers. d. During the year: Sold inventory costing $30,000 for $65,000 on account. e. During the year: Paid employees $15,000 as compensation for services rendered during the year. f. During the year: Collected $45,000 from customers related to sales on account. g. During the year: Paid merchandise suppliers $28,000 related to purchases on account. h. December 31: Recognized depreciation on the building of $7,000 for financial reporting. Depreciation expense for income tax purposes was $10,000. i. December 31: Recognized compensation for services rendered during the last week in December but not paid by year-end of $4,000. j. December 31: Recognized and paid interest on the bank loan in Part b of $2,400 for the year. k. Recognized income taxes on the net effect of the preceding transactions at an income tax rate of 40%. Assume that the firm pays cash immediately for any taxes currently due to the government