Harvey quit his job at state university where he earned $45,000 a year. he figures his entrepreneurial talent or foregone entrepreneurial income to be $5,000 a year. to start the business, he cashed in $100,000 in bonds that earned 10 percent interest annually to buy a software company, extreme gaming. in the first year, the firm sold 11,000 units of software at $75 for each unit. of the $75 per unit, $55 goes for the costs of production, packaging, marketing, employee wages and benefits, and rent on a building.

refer to the above information. the explicit costs of harvey's firm in the first year were:

$605,000
$825,000
$655,000
$150,000

Costco wholesale corporation operates membership warehouses selling food, appliances, consumer electronics, apparel and other household goods at 471 locations across the u.s. as well as in canada, mexico and puerto rico. as of its fiscal year-end 2005, costco had approximately 21.2 million members. selected fiscal-year information from the company's balance sheets follows. ($ millions). selected balance sheet data 2005 2004 merchandise inventories $4,015 $3,644 deferred membership income (liability) 501 454 (a) during fiscal 2005, costco collected $1,120 cash for membership fees. use the financial statement effectstemplate to record the cash collected for membership fees. (b) in 2005, costco recorded $46,347 million in merchandise costs (that is, cost of goods sold). record thistransaction in the financial statement effects template. (c) determine the value of merchandise that costco purchased during fiscal-year 2005. use the financial statementeffects template to record these merchandise purchases. assume all of costco's purchases are on credit.