In 2021, bratten fitness company made the following cash purchases: the exclusive right to manufacture and sell the x-core workout equipment from symmetry corporation for $202,000. symmetry created the unique design for the equipment. bratten also paid an additional $11,000 in legal and filing fees to attorneys to complete the transaction. an initial fee of $255,000 for a three-year agreement with silver’s gym to use its name for a new facility in the local area. silver’s gym has locations throughout the country. bratten is required to pay an additional fee of $5,200 for each month it operates under the silver’s gym name, with payments beginning in march 2021. bratten also purchased $402,000 of exercise equipment to be placed in the new facility. the exclusive right to sell healthy choice, a book authored by kent patterson, for $21,000. the book includes healthy recipes, recommendations for dietary supplements, and natural remedies. bratten plans to display the book at the check-in counter at its new facility, as well as make it available online. prepare a summary journal entry to record expenditures related to initial acquisitions.

Recently, verizon wireless ran a pricing trial in order to estimate the elasticity of demand for its services. the manager selected three states that were representative of its entire service area and increased prices by 5 percent to customers in those areas. one week later, the number of customers enrolled in verizon's cellular plans declined 4 percent in those states, while enrollments in states where prices were not increased remained flat. the manager used this information to estimate the own-price elasticity of demand and, based on her findings, immediately increased prices in all market areas by 5 percent in an attempt to boost the company's 2016 annual revenues. one year later, the manager was perplexed because verizon's 2016 annual revenues were 10 percent lower than those in 2015"the price increase apparently led to a reduction in the company's revenues. did the manager make an error? yes - the one-week measures show demand is inelastic, so a price increase will decrease revenues. yes - the one-week measures show demand is elastic, so a price increase will reduce revenues. yes - cell phone elasticity is likely much larger in the long-run than the short-run. no - the cell phone market must have changed between 2011 and 2012 for this price increase to lower revenues.

Aborrower takes out a 30-year adjustable rate mortgage loan for $200,000 with monthly payments. the first two years of the loan have a "teaser" rate of 4%, after that, the rate can reset with a 5% annual payment cap. on the reset date, the composite rate is 6%. what would the year 3 monthly payment be?

True or false entrepreneurs try to meet the needs of the marketplace by supplying a service or product