Abardeen corporation borrowed $90,000 from the bank on october 1, 2016. the note had an 8 percent annual rate of interest and matured on march 31, 2017. interest and principal were paid in cash on the maturity date.
a. what amount of cash did abardeen pay for interest in 2016?
b. what amount of interest expense was recognized on the 2016 income statement?
c. what amount of total liabilities was reported on the december 31, 2016, balance sheet?
d. what total amount of cash was paid to the bank on march 31, 2017, for principal and interest?
e. what amount of interest expense was reported on the 2017 income statement?

1. consider a two-firm industry. firm 1 (the incumbent) chooses a level of output qı. firm 2 (the potential entrant) observes qı and then chooses its level of output q2. the demand for the product is p 100 q, where q is the total output sold by the two firms which equals qi +q2. assume that the marginal cost of each firm is zero. a) find the subgame perfect equilibrium levels of qi and q2 keeping in mind that firm 1 chooses qi first and firm 2 observes qi and chooses its q2. find the profits of the two firms-n1 and t2- in the subgame perfect equilibrium. how do these numbers differ from the cournot equilibrium? b) for what level of qi would firm 2 be deterred from entering? would a rational firm 1 have an incentive to choose this level of qi? which entry condition does this market have: blockaded, deterred, or accommodated? now suppose that firm 2 has to incur a fixed cost of entry, f> 0. c) for what values of f will entry be blockaded? d) find out the entry deterring level of q, denoted by q1', a expression for firm l's profit, when entry is deterred, as a function of f. for what values of f would firm 1 use an entry deterring strategy?