Eames Company enters into a contract with Leather Corporation to install a new general ledger system and provide IT services for the ledger system for five years. Eames Company incurs commission costs of $25,000 to obtain the contract. Design costs of $40,000 are incurred to modify the system according to Leather's specific requests. $10,000 is spent on printed materials, which includes $5,000 for the original printing of ledger handbooks and $5,000 for a reprint of ledger handbooks due to errors in the first printing.

The incremental cost of obtaining the contract with Leather Corporation that will be recognized as an asset is:

A. $65,000
B. $25,000
C. $70,000
D. $75,000

4. understanding different policy options to correct for negative externalities carbon dioxide emissions have been linked to global warming. the following table lists some possible public policies aimed at reducing the amount of carbon dioxide in the air. for each policy listed, identify whether it is a command-and-control policy (regulation), tradable permit system, corrective subsidy, or corrective tax. public policy command-and-control policy tradable permit system corrective subsidy corrective tax the government charges factories $110 for every ton of carbon dioxide they emit. the government orders every factory to adopt a new technology, which reduces carbon-dioxide emissions into the atmosphere. trees take carbon dioxide out of the air and convert it to oxygen, so the government funds a tree-planting initiative by offering $110 to any citizen who plants a tree. the government limits total carbon-dioxide emissions by all factories to 180,000 tons per month. each individual factory is given the right to emit 140 tons of carbon dioxide, and factories may buy and sell these rights in a marketplace.