Michael lives on an island and owns a beach house worth $400,000. of that, $100,000 is the cost of land and $300,000 is the cost of the structure. the probability that a hurricane destroys his house is 3percent (he will still own the land). michael can purchase hurricane insurance at the price of $2for each $100 of coverage.1. what is michael’s contingent consumption bundle if michael does not purchase insurance?

Due to rapid employee turnover in the accounting department, the following transactions involving intangible assets were improperly recorded by bridgeport corporation. 1. bridgeport developed a new manufacturing process, incurring research and development costs of $195,600. the company also purchased a patent for $45,200. in early january, bridgeport capitalized $240,800 as the cost of the patents. patent amortization expense of $12,040 was recorded based on a 20-year useful life. 2. on july 1, 2017, bridgeport purchased a small company and as a result recorded goodwill of $52,000. bridgeport recorded a half-year’s amortization in 2017, based on a 20-year life ($1,300 amortization). the goodwill has an indefinite life. prepare all journal entries necessary to correct any errors made during 2017. assume the books have not yet been closed for 2017.