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Consider each of the transactions below. All of the expenditures were made in cash. 1. The Edison Company spent $30,000 during the year for experimental purposes in connection with the development of a new product. 2. In April, the Marshall Company lost a patent infringement suit and paid $11,000 in legal fees to the plaintiff. 3. In March, the Cleanway Laundromat bought equipment. Cleanway paid $24,000 down and signed a noninterest-bearing note requiring the payment of $27,000 in nine months. The cash price for this equipment was $43,000. 4. On June 1, the Jamsen Corporation installed a sprinkler system throughout the building at a cost of $46,000. 5. The Mayer Company, plaintiff, paid $30,000 in legal fees in November, in connection with a successful infringement suit on its patent. 6. The Johnson Company traded its old equipment for new equipment. The new equipment has a fair value of $15,400. The old equipment had an original cost of $16,400 and a book value of $8,400 at the time of the trade. Johnson also paid cash of $11,600 as part of the trade. The exchange has commercial substance. Required: Prepare journal entries to record each of the above transactions. Assuming the duck hunting trip Bill just completed is typical, what costs are relevant to a decision as to whether Bill should go duck hunting again this season? Suppose Bill gets lucky on his next hunting trip and shoots 14 ducks using the same amount of shotgun shells he used on his previous hunting trip to bag 8 ducks. How much would it have cost him to shoot the last six ducks

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