The numo company, which was acquired (and renamed) in 2003 by e. r. numo, sells frigets to multinational firms. in 2017 a venture capital firm provided additional funding in order to allow the company to expand operations. the following information was taken from the preliminary trial balance of numo company, a calendar year company, on december 31, 2017: cash accounts receivable allowance for doubtful accounts inventory supplies on hand transportation equipment accumulated depreciation- transportation equipment goodwill accounts payable deferred tax liability - depreciation common stock, $2 par paid-in capital in excess of par value retained earnings, 1/1/17 sales salaries/compensation expense cost of goods sold supplies expense depreciation expense- transportation equipment municipal bond interest 74,000 60,000 90,000 4,000 203,000 68,000 6,000 122,000 81,000 80,000 88,000 506,000 180,000 17,000 22,000 9,000 however, the bookkeeping staff has not recorded the following transactions and adjustments because they were unsure about the appropriate accounting treatment: on july 1, 2017, numo issued a five-year, $400,000, non-interest bearing note to the venture capital firm and received $248,368 in cash, which reflects a 10% market yield. for financial statement purposes, interest expense is recognized using the effective interest rate method. however, for tax purposes, interest expense will be computed usng the straight-line method. hint - in addition to the 7/1/17 transaction, be sure to record the required adjusting entry to record interest expense as of 12/31/17 as any required dta or dtl (1)

Suppose that fizzo and pop hop are the only two firms that sell orange soda. the following payoff matrix shows the profit (in millions of dollars) each company will earn depending on whether or not it advertises: pop hopadvertise doesn’t advertisefizzo advertise 10, 10 18, 2doesn’t advertise 2, 18 11, 11for example, the upper right cell shows that if fizzo advertises and pop hop doesn't advertise, fizzo will make a profit of $18 million, and pop hop will make a profit of $2 million. assume this is a simultaneous game and that fizzo and pop hop are both profit-maximizing firms.if fizzo decides to advertise, it will earn a profit if pop hop advertises and a profit if pop hop does not advertise.if fizzo decides not to advertise, it will earn a profit if pop hop advertises and a profit if pop hop does not advertise.if pop hop advertises, fizzo makes a higher profit if it chooses (not to advertise, to .if pop hop doesn't advertise, fizzo makes a higher profit if it chooses (not to advertise, to . suppose that both firms start off not advertising. if the firms act independently, what strategies will they end up choosing? fizzo will choose to advertise and pop hop will choose not to advertise.both firms will choose to advertise.fizzo will choose not to advertise and pop hop will choose to advertise.both firms will choose not to advertise.again, suppose that both firms start off not advertising. if the firms decide to collude, what strategies will they end up choosing? fizzo will choose not to advertise and pop hop will choose to advertise.both firms will choose not to advertise.fizzo will choose to advertise and pop hop will choose not to advertise.both firms will choose to advertise.