Alex, inc., buys 30 percent of steinbart company on january 1, 2017, for $694,000. the equity method of accounting is to be used. steinbart’s net assets on that date were $2.10 million. any excess of cost over book value is attributable to a trade name with a 20-year remaining life. steinbart immediately begins supplying inventory to alex as follows:
year cost to steinbart transfer price amount held by alex
at year-end
(at transfer price)
2017 $209,600 $262,000 $65,500
2018 134,190 189,000 58,200
inventory held at the end of one year by alex is sold at the beginning of the next. steinbart reports net income of $97,250 in 2017 and $132,450 in 2018 while paying $40,000 in dividends each year. what is the equity income in steinbart to be reported by alex in 2018?

At the end of year 2, retained earnings for the baker company was $3,550. revenue earned by the company in year 2 was $3,800, expenses paid during the period were $2,000, and dividends paid during the period were $1,400. based on this information alone, retained earnings at the beginning of year 2 was:

Greenway industries is a major multinational conglomerate. its business units compete in a range of industries, including home appliances, pharmaceuticals, commercial real estate, and plastics manufacturing. although its largest business unit, which produces kitchen appliances, is among the most profitable in the industry, it generates only 35 percent of the company's revenues. which of the following is most likely true of greenway's stock price? a. it is valued at less than the sum of its individual business units. b. it is valued at greater than the sum of individual business units. c. it is valued at the exact sum of individual business units. d. it is consistently lower than the industry average. it is valued at greater than the sum of individual business units.

Suppose that a paving company produces paved parking spaces (q) using a fixed quantity of land (t) and variable quantities of cement (c) and labor (l). the firm is currently paving 1,000 parking spaces. the firm's cost of cement is $3 comma 600.003,600.00 per acre covered (c) and its cost of labor is $35.0035.00/hour (w). for the quantities of c and l that the firm has chosen, mp subscript upper c baseline equals 60mpc=60 and mp subscript upper l baseline equals 7mpl=7. is this firm minimizing its cost of producing parking spaces?