Riverside, Inc., wants to update the finish on its window frame. It has two choices: (a) buy new equipment at a cost of 20000; (b) make major modifications at a cost of $13,000. If the firm chooses to buy new equipment, materials and labor will be $3 per frame. If it chooses to make modifications, materials and labor will be $5 per frame. If the company thinks it can sell 1500 units at a selling price of $30, which of the following option is better? (a) purchase new equipment (b) make major modifications (c) Sell 700 units after (a) purchasing new equipment and sell 800 units after (b) making major modifications (d) It does not matter which option is chosen. (e) None of these

Following are the transactions for valdez services. the company paid $2,000 cash for payment on a 6-month-old account payable for office supplies. the company paid $1,200 cash for the just completed two-week salary of the receptionist. the company paid $39,000 cash for equipment purchased. the company paid $800 cash for this month’s utilities. the company paid $4,500 cash in dividends to the owner (sole shareholder). examine the above transactions and identify those that create expenses for valdez services. prepare general journal entries to record those transactions that created expenses in the above given order.

4. suppose that pollution in a neighborhood comes from two factories, with marginal benefit curves given by mb1 = 12 – p1 and mb2 = 8 – p2. the level of pollution in the neighborhood is given by p = p1 + p2. the government wants to limit pollution by instituting a pollution-rights market. the government’s desired level of p is 10, so it prints 10 pollution rights and offers them for sale to the firms. a)find the equilibrium selling price of a pollution right, as well as the allocation of rights (and hence pollution levels) across the two factories. b)repeat part (a) for the case where the government’s desired level of pollution equals 14. c)comment on the usefulness of a pollution rights market in achieving efficient levels of pollution abatement.

Jen left a job paying $75,000 per year to start her own florist shop in a building she owns. the market value of the building is $120,000. she pays $35,000 per year for flowers and other supplies, and has a bank account that pays 5 percent interest. what is the economic cost of jen's business?