1. scenario: stephanie has been driving for four years without any major auto accidents-until today. it was pouring rain when she left class, and within minutes of leaving, she was forced to make an evasive maneuver that caused her to go into a spin on the wet road. after knocking an expensive, high-end luxury car down an embankment, stephanie came to a stop by smashing into the side of a mid-range sedan. she was found to be at fault in the accident, so let's look at the extent of the damage she caused: luxury car: this car was totaled at a value of $95,000. sedan: this car will need $4,000 in repairs. hospital bills: the driver of the luxury car had $15,000 in medical bills for a broken arm, while his passenger had $185,000 in medical bills for emergency surgery and recovery. like many americans, stephanie carries a 100/300/100 liability policy. given the fact that stephanie does not have an umbrella policy in place, how much of the remaining hospital bills for the passenger in the luxury car will she be held personally responsible for?

a. $4,000
b. $15,000
c. 85,000
d. 100,000

Which term refers to the cost that motivates an economic decision

On january 1, 2017, fisher corporation purchased 40 percent (90,000 shares) of the common stock of bowden, inc. for $980,000 in cash and began to use the equity method for the investment. the price paid represented a $48,000 payment in excess of the book value of fisher's share of bowden's underlying net assets. fisher was willing to make this extra payment because of a recently developed patent held by bowden with a 15-year remaining life. all other assets were considered appropriately valued on bowden's books. bowden declares and pays a $90,000 cash dividend to its stockholders each year on september 15. bowden reported net income of $400,000 in 2017 and $348,000 in 2018. each income figure was earned evenly throughout its respective year. on july 1, 2018, fisher sold 10 percent (22,500 shares) of bowden's outstanding shares for $338,000 in cash. although it sold this interest, fisher maintained the ability to significantly influence bowden's decision-making process. prepare the journal entries for fisher for the years of 2017 and 2018. (if no entry is required for a transaction/event, select "no journal entry required" in the first account field. do not round intermediate calculations. round your final answers to the nearest whole dollar.)

Advanced enterprises reports year-end information from 2018 as follows: sales (160,250 units) $968,000 cost of goods sold 641,000 gross margin 327,000 operating expenses 263,000 operating income $64,000 advanced is developing the 2019 budget. in 2019 the company would like to increase selling prices by 14.5%, and as a result expects a decrease in sales volume of 9%. all other operating expenses are expected to remain constant. assume that cost of goods sold is a variable cost and that operating expenses are a fixed cost. should advanced increase the selling price in 2019?