Imagine two cities, Engelgrad andLegreeville, where the rich, middle, and poor income recipients inone city have annual incomes identical to their counterparts'incomes in the other city. In Engelgrad, the poorest families oneyear almost always end up as the richest families the next year andbecome middle-income families the year after that. In Legreeville, however, the poor remain poor and the rich remain rich. Which ofthe following is true about the two cities?
A. Annual data on the distribution ofincome will indicate that the degree of income inequality in thetwo cities is identical.
B. The degree of lifetime incomeinequality in the two cities is identical.
C. The income mobility of people in thetwo cities is identical.
D. The distribution of annual income ismore unequal in Legreeville.

Alpine west, inc., operates a downhill ski area near lake tahoe, california. an all-day, adult ticket can be purchased for $55. adult customers also can purchase a season pass that entitles the pass holder to ski any day during the season, which typically runs from december 1 through april 30. the season pass is nontransferable, and the $450 price is nonrefundable. alpine expects its season pass holders to use their passes equally throughout the season. the company’s fiscal year ends on december 31. on november 6, 2009, jake lawson purchased a season ticket. required: 1. when should alpine west recognize revenue from the sale of its season passes? 2. prepare the appropriate journal entries that alpine would record on november 6 and december 31. 3. what will be included in the 2009 income statement and 2009 balance sheet related to the sale of the season pass to jake lawson?