On january 1, 2013, pride co. purchased 90 percent of the outstanding voting shares of star inc. for $540,000 cash. the acquisition-date fair value of the noncontrolling interest was $60,000. at january 1, 2013, star's net assets had a total carrying amount of $420,000. equipment (8-year remaining life) was undervalued on star's financial records by $80,000. any remaining excess fair value over book value was attributed to a customer list developed by star (4-year remaining life), but not recorded on its books. star recorded income of $70,000 in 2013 and $80,000 in 2014. each year since the acquisition, star has paid a $20,000 dividend. at january 1, 2015, pride's retained earnings show a $250,000 balance.
selected account balances for the two companies from their separate operations were as follows:
pride star
2015 revenues $498,000 $285,000
2015 expenses 350,000 195,000
what is consolidated net income for 2015?
$238,000.
$197,500.
$203,000.
$194,000.

Verizon communications, inc., provides the following footnote relating to its leasing activities in its 10-k report. the aggregate minimum rental commitments under noncancelable leases for the periods shown at december 31, 2010, are as follows: years (dollars in millions) capital leases operatingleases 2011 $97 $1,898 2012 74 1,720 2013 70 1,471 2014 54 1,255 2015 42 1,012 thereafter 81 5,277 total minimum 418 $ 12,633 rental commitments less interest and (86) executory costs present value of 332 minimum lease payments less current (75) installments long-term obligation $257 at december 31, 2010 (a) confirm that verizon capitalized its capital leases using a rate of 7.4 %. (b) compute the present value of verizon's operating leases, assuming an 7.4% discount rate and rounding the remaining lease term to 3 decimal places. (use a financial calculator or excel to compute. do not round until your final answers. round each answer to the nearest whole number.)

Consider a treasury bill with a rate of return of 5% and the following risky securities: security a: e(r) = .15; variance = .0400 security b: e(r) = .10; variance = .0225 security c: e(r) = .12; variance = .1000 security d: e(r) = .13; variance = .0625 the investor must develop a complete portfolio by combining the risk-free asset with one of the securities mentioned above. the security the investor should choose as part of her complete portfolio to achieve the best cal would be a. security a b. security b c. security c d. security d

Trade will take place: a. if the maximum that a consumer is willing and able to pay is less than the minimum price the producer is willing and able to accept for a good. b. if the maximum that a consumer is willing and able to pay is greater than the minimum price the producer is willing and able to accept for a good. c. only if the maximum that a consumer is willing and able to pay is equal to the minimum price the producer is willing and able to accept for a good. d. none of the above.