Suppose the economy was at full employment GDP and then consumer optimism soars. If automatic stabilizers are in place, the stabilizers will result in: a. higher tax collection and lower government spending on transfer payments, which helps slow growth in real GDP.
b. lower tax collection and lower government spending on transfer payments, which helps offset a recession.
c. lower tax collection and higher government spending on transfer payments, which helps slow growth in real GDP.
d. higher tax collection and higher government spending on transfer payments, which helps offset a recession.

Due to rapid employee turnover in the accounting department, the following transactions involving intangible assets were improperly recorded by bridgeport corporation. 1. bridgeport developed a new manufacturing process, incurring research and development costs of $195,600. the company also purchased a patent for $45,200. in early january, bridgeport capitalized $240,800 as the cost of the patents. patent amortization expense of $12,040 was recorded based on a 20-year useful life. 2. on july 1, 2017, bridgeport purchased a small company and as a result recorded goodwill of $52,000. bridgeport recorded a half-year’s amortization in 2017, based on a 20-year life ($1,300 amortization). the goodwill has an indefinite life. prepare all journal entries necessary to correct any errors made during 2017. assume the books have not yet been closed for 2017.