Suppose the government is considering penalizing airlines $27,500 per passenger each time passengers are made to remain on the p

The solution to the question is 10.

Answer:

A. Dr Amortization expense $43,750

Cr Patents $43,750

B. Dr Amortization expense $5,230

Cr Patents $5,230

C. Dr Amortization expense $14,000

Cr Franchises $14,000

Explanation:

Journal entry preparations

A. Dr Amortization expense $43,750

($350,000÷8 years = $43,750)

Cr Patents $43,750

(Recording amortization for the patent)

B. Dr Amortization expense $5,230

($52,300÷10 years = $5,230)

Cr Patents $5,230

(Recording amortization for the patent)

C. Dr Amortization expense $14,000

($70,000÷5 years = $14,000)

Cr Franchises $14,000

(Recording amortization for franchises)

For Part a, the equilibrium price that Dumphy and Funke will set is $30. In Part b, the profits for Dumphy and Funke at this equilibrium price amount to $0. Regarding Part c, both artists are expected to engage in price competition after experiencing a decline in demand. To clarify, the price each artist sets equals their marginal cost, thus establishing equilibrium at MC = $30.

Answer and Explanation:

Here is the breakdown:

1. For the contribution to Mother Nature

This corresponds to sales amounting to $2,750

2. Regarding Tlaloc's value-added

It equates to

= $7,750 - $2,750

= $5,000

3. For Bob’s value added

It corresponds to

= $20,000 - $7,750

= $12,250

This process applies equally to all three.