The following information is available for two different types of businesses for the 2016 accounting year. Hopkins CPAs is a service business that provides accounting services to small businesses. Sports Clothing is a merchandising business that sells sports clothing to college students. Data for Hopkins CPAs (1) Borrowed $90,000 from the bank to start the business. (2) Provided $50,000 of services to clients and collected $50,000 cash. (3) Paid salary expense of $32,000. Data for Sports Clothing (1) Borrowed $90,000 from the bank to start the business. (2) Purchased $50,000 inventory for cash. (3) Inventory costing $26,000 was sold for $50,000 cash. (4) Paid $8,000 cash for operating expenses. Prepare an income statement and balance sheet.

Wo firms, a and b, each currently dump 50 tons of chemicals into the local river. the government has decided to reduce the pollution and from now on will require a pollution permit for each ton of pollution dumped into the river. it costs firm a $100 for each ton of pollution that it eliminates before it reaches the river, and it costs firm b $50 for each ton of pollution that it eliminates before it reaches the river. the government gives each firm 20 pollution permits. government officials are not sure whether to allow the firms to buy or sell the pollution permits to each other. what is the total cost of reducing pollution if firms are not allowed to buy and sell pollution permits from each other? what is the total cost of reducing pollution if the firms are allowed to buy and sell permits from each other? a. $3,000; $1,500 b. $4,500; $3,500 c. $4,500; $4,000 d. $4,500; $2,500